REG - Standard Chrtrd PLC - 1st Quarter Results
02/05/2024 07:00
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RNS Number : 9249M Standard Chartered PLC 02 May 2024
Standard Chartered PLC
Q1'24 Results
02 May 2024
Registered in England under company No. 966425
Registered Office: 1 Basinghall Avenue, London, EC2V 5DD, UK
Table of contents
Performance highlights 1
Statement of results 3
Group Chief Financial Officer's review 4
Supplementary financial information 13
Underlying versus reported results reconciliations 24
Risk review 28
Capital review 33
Financial statements 37
Other supplementary information 42
Unless another currency is specified, the word 'dollar' or symbol '$' in this
document means US dollar and the word 'cent' or symbol 'c' means one-hundredth
of one US dollar.
Unless the context requires, within this document, 'China' refers to the
People's Republic of China and, for the purposes of this document only,
excludes Hong Kong Special Administrative Region (Hong Kong), Macau Special
Administrative Region (Macau) and Taiwan. 'Korea' or 'South Korea' refers to
the Republic of Korea.
Within the tables in this report, blank spaces indicate that the number is not
disclosed, dashes indicate that the number is zero and nm stands for not
meaningful.
Standard Chartered PLC is incorporated in England and Wales with limited
liability. Standard Chartered PLC is headquartered in London. The Group's head
office provides guidance on governance and regulatory standards. Standard
Chartered PLC stock codes are: HKSE 02888 and LSE STAN.LN.
Standard Chartered PLC - Results for the first quarter ended 31 March 2024
All figures are presented on an underlying basis and comparisons are made to
2023 on a reported currency basis, unless otherwise stated. A reconciliation
of restructuring and other items excluded from underlying results is set out
on pages 24-27.
Bill Winters, Group Chief Executive, said:
"We delivered a strong set of results in the first quarter of 2024, with
double-digit growth in income and positive operational leverage. Business
performance was strong and broad-based across our segments, products and
markets in what continues to be an uncertain environment. We have taken action
to create a simpler and more efficient organisation with changes to our Group
management structure and we are advancing our Fit for Growth programme. We
remain confident in the delivery of our financial targets and are maintaining
our full year 2024 guidance."
Selected information on Q1'24 financial performance with comparisons to Q1'23 unless otherwise stated
• Operating income up 17% to $5.2bn, up 20% at constant currency (ccy); up
14% at ccy excluding two notable items of $234m reported in Treasury and Other
products
- Net interest income (NII) up 5% at ccy to $2.4bn with net interest margin
of 1.76%, up 6bps quarter-on-quarter (QoQ)
- Non NII up 37% at ccy to $2.7bn, up 25%, excluding two notable items
- Markets up 17% at ccy from higher Macro Trading across rates, foreign
exchange and commodities and Credit Trading
- Wealth Solutions up 23% at ccy, with broad-based growth across products
and supported by robust leading indicators in Affluent net new money and new
to bank clients
- Banking up 17% at ccy, from Lending & Financial Solutions driven by
higher origination and distribution volumes
- Two notable items of $234m from revaluation of FX positions in Egypt and
hyperinflation in Ghana
• Operating expenses up 6% at ccy to $2.8bn, up 2% QoQ at ccy
• Income-to-cost jaws positive in the quarter
• Credit impairment charge of $176m in Q1'24, primarily Wealth &
Retail Banking (WRB) of $136m reflecting a charge in line with recent
quarters; net nil charge for Corporate & Investment Banking (CIB) with
China Commercial Real Estate (CRE) portfolio charge of $10m offset by other
releases
- Loan-loss rate (LLR) of 23bps in Q1'24
- High risk assets of $8.5bn, down $2bn QoQ; $1bn from reversal of existing
sovereign exposure from reverse repo to investment securities
- China CRE portfolio: total expected credit loss provisions $1.2bn, stage 3
exposures of $1.5bn with cover ratio including collateral of 90% and a
remaining management overlay of $129m
• Underlying profit before tax of $2.1bn, up 27% at ccy; reported profit
before tax of $1.9bn, up 8% at ccy
• Tax charge of $0.5bn; underlying effective tax rate of 26%
• Other items of $112m includes $100m provision in respect of the Korea
equity linked securities portfolio
• Balance sheet remains strong, liquid and well-diversified
- Loans and advances to customers of $283bn, down $4bn or 1% since 31.12.23;
up $4bn or 2% on an underlying basis; growth from CIB partly offset by
mortgage headwinds
- Customer deposits of $459bn, down $10bn or 2% since 31.12.23; down
$6bn or 1% at ccy; growth in WRB offset by lower CIB CASA from month end
client activity, substantially returned post quarter end
- Liquidity coverage ratio of 146% (31.12.23: 145%)
• Risk-weighted assets (RWA) of $252bn, up $8bn or 3% since 31.12.23
- Credit risk RWA up $2bn includes increases from change in asset mix and
model changes, partly offset by lower FX
- Market risk RWA up $4bn; RWA deployed to help clients capture
opportunities in Markets
- $2bn from mechanically higher Operational risk RWA, due to an increase in
average income as measured over a rolling three-year time horizon
• Capital position remains robust
- Common equity tier 1 (CET1) ratio of 13.6% (31.3.24) broadly stable post
the full impact of the $1 billion share buyback announced in February 2024;
underlying profit accretion offset by increased RWAs; around two-thirds of
share buyback completed to date
• Underlying earnings per share (EPS) increased 15.3 cents or 41% to
52.9 cents; Reported EPS increased 5.8 cents or 14% to 46.5 cents
Page 01
Standard Chartered PLC - Results for the first quarter ended 31 March 2024
• Tangible net asset value per share decreased 3 cents to 1,390 cents
since 31.12.23; profit accretion offset by reserve movements and full $1bn
share buyback reduction from tangible equity, whilst reduction in the number
of basic ordinary shares reflects buyback completion of 44% as of 31.3.24
• Return on tangible equity (RoTE) of 15.2%, up 3%pts
Guidance
The start to the year has been strong and the momentum we see across our
businesses gives us confidence in the delivery of our financial targets set
out in February. We are maintaining our 2024 guidance:
• Operating income to increase around the top of 5-7% range in 2024,
excluding the two notable items in Q1'24
• Net interest income for 2024 of $10bn to $10.25bn, at ccy
• Positive income-to-cost jaws, excluding UK bank levy, at ccy in 2024
• Low single-digit percentage growth in loans and advances to customers
and RWA in 2024
• Continue to expect LLR to normalise towards the historical through the
cycle 30 to 35bps range
• Continue to operate dynamically within the full 13-14% CET1 ratio target
range
• Continue to increase full-year dividend per share over time
• RoTE increasing steadily from 10%, targeting 12% in 2026 and to progress
thereafter
Page 02
Statement of results
Q1'24 Q1'23 Change(1
$million
$million ) %
Underlying performance
Operating income 5,152 4,396 17
Operating expenses (including UK bank levy) (2,786) (2,675) (4)
Credit impairment (176) (26) nm⁸
Other impairment (60) - nm⁸
(Loss)/Profit from associates and joint ventures (1) 11 nm⁸
Profit before taxation 2,129 1,706 25
Profit attributable to ordinary shareholders² 1,393 1,076 29
Return on ordinary shareholders' tangible equity (%) 15.2 11.9 330bps
Cost to income ratio (excluding bank levy) (%) 54.1 60.9 680bps
Reported performance(7)
Operating income 5,130 4,560 13
Operating expenses (2,997) (2,750) (9)
Credit impairment (165) (20) nm⁸
Other impairment (60) - nm⁸
Profit from associates and joint ventures 6 18 nm⁸
Profit before taxation 1,914 1,808 6
Taxation (519) (464) (12)
Profit for the period 1,395 1,344 4
Profit attributable to parent company shareholders 1,403 1,341 5
Profit attributable to ordinary shareholders(2) 1,223 1,163 5
Return on ordinary shareholders' tangible equity (%) 13.5 13.0 50bps
Cost to income ratio (including bank levy) (%) 58.4 60.3 190bps
Net interest margin (%) (adjusted)(6) 1.76 1.63 13bps
Balance sheet and capital
Total assets 812,525 820,678 (1)
Total equity 50,839 50,011 2
Average tangible equity attributable to ordinary shareholders² 36,510 36,269 1
Loans and advances to customers 283,403 300,627 (6)
Customer accounts 459,386 462,169 (1)
Risk weighted assets 252,116 250,893 -
Total capital 52,538 52,318 -
Total capital (%) 20.8 20.9 (10)bps
Common Equity Tier 1 34,279 34,402 -
Common Equity Tier 1 ratio (%) 13.6 13.7 (10)bps
Advances-to-deposits ratio (%)(3) 54.3 56.2 (2.0)
Liquidity coverage ratio (%) 146 161 (15)
Leverage ratio (%) 4.8 4.7 10bps
Information per ordinary share Cents Cents Change(1)
Earnings per share - underlying(4) 52.9 37.6 15.3
- reported(4) 46.5 40.7 5.8
Net asset value per share 1,626 1,505 121
Tangible net asset value per share(5) 1,390 1,297 93
Number of ordinary shares at period end (millions) 2,610 2,833 (8)
1 Variance is better/(worse) other than assets, liabilities and
risk-weighted assets. Change is percentage points difference between two
points rather than percentage change for total capital ratio (%), common
equity tier 1 ratio (%), net interest margin (%), advances-to-deposits ratio
(%), liquidity coverage ratio (%), leverage ratio (%), cost-to-income ratio
(%) and return on ordinary shareholders' tangible equity (%). Change is cents
difference between two points rather than percentage change for earnings per
share, net asset value per share and tangible net asset value per share
2 Profit attributable to ordinary shareholders is after the deduction of
dividends payable to the holders of non-cumulative redeemable preference
shares and Additional Tier 1 securities classified as equity
3 When calculating this ratio, total loans and advances to customers
excludes reverse repurchase agreements and other similar secured lending,
excludes approved balances held with central banks, confirmed as repayable at
the point of stress and includes loans and advances to customers held at fair
value through profit and loss. Total customer accounts include customer
accounts held at fair value through profit or loss
4 Represents the underlying or reported earnings divided by the basic
weighted average number of shares. Prior period refers to 3 months ended
31.03.23
5 Calculated on period end net asset value, tangible net asset value and
number of shares
6 Net interest margin is calculated as adjusted net interest income
divided by average interest-earning assets, annualised
7 Reported performance/results within this interim financial report means
amounts reported under UK-adopted IAS and EU IFRS. In prior periods Reported
performance/results were described as Statutory performance/results
8 Not meaningful
Page 03
Group Chief Financial Officer's review
The Group delivered a strong performance in the first quarter of 2024
Summary of financial performance
Q1'24 Q1'23 Change Constant currency change¹ Q4'23 Change Constant currency change¹
$million
$million
%
%
$million
%
%
Underlying net interest income(3) 2,419 2,341 3 5 2,392 1 1
Underlying non NII(3) 2,733 2,055 33 37 1,632 67 68
Underlying operating income 5,152 4,396 17 20 4,024 28 28
Other operating expenses (2,786) (2,675) (4) (6) (2,754) (1) (2)
UK bank levy - - nm(4) nm(4) (108) 100 100
Underlying operating expenses (2,786) (2,675) (4) (6) (2,862) 3 2
Underlying operating profit before impairment and taxation 2,366 1,721 37 40 1,162 104 102
Credit impairment (176) (26) nm(4) nm(4) (62) (184) (167)
Other impairment (60) - nm(4) nm(4) (41) (46) (50)
Profit from associates and joint ventures (1) 11 (109) (109) (3) 67 67
Underlying profit before taxation 2,129 1,706 25 27 1,056 102 100
Restructuring (55) 48 nm(4) nm(4) (63) 13 3
Goodwill & other impairment - - nm(4) nm(4) (153) 100 100
DVA (48) 54 (189) (189) 35 nm(4) nm(4)
Other items (112) - nm(4) nm(4) 262 (143) (143)
Reported profit before taxation 1,914 1,808 6 8 1,137 68 66
Taxation (519) (464) (12) (12) (199) (161) (123)
Profit for the period 1,395 1,344 4 6 938 49 52
Net interest margin (%)(2) 1.76 1.63 13 1.70 6
Underlying return on tangible equity (%)(2) 15.2 11.9 330 9.4 580
Underlying earnings per share (cents) 52.9 37.6 41 30.4 74
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Change is the basis points (bps) difference between the two periods
rather than the percentage change
3 To be consistent with how we compute Net Interest Margin ('NIM'), and to
align with the way we manage our business, we have changed our definition of
Underlying net interest income ('NII') and Underlying non NII. The adjustments
made to NIM, including interest expense relating to funding our trading book,
will now be shown against Underlying non NII rather than Underlying NII. Prior
periods have been restated. There is no impact on total income
4 Not meaningful
Reported financial performance summary
Q1'24 Q1'23 Change Constant currency change¹ Q4'23 Change Constant currency change¹
$million
$million
%
%
$million
%
%
Net interest income 1,572 2,006 (22) (20) 1,860 (15) (16)
Non NII 3,558 2,554 39 43 2,509 42 42
Reported operating income 5,130 4,560 13 15 4,369 17 17
Reported operating expenses (2,997) (2,750) (9) (12) (3,013) 1 -
Reported operating profit before impairment and taxation 2,133 1,810 18 20 1,356 57 55
Credit impairment (165) (20) nm³ nm³ (55) nm³ (185)
Goodwill & other impairment (60) - nm³ nm³ (197) 70 69
Profit from associates and joint ventures 6 18 (67) (67) 33 (82) (82)
Reported profit before taxation 1,914 1,808 6 8 1,137 68 66
Taxation (519) (464) (12) (12) (199) (161) (123)
Profit/(loss) for the period 1,395 1,344 4 6 938 49 52
Reported return on tangible equity (%)(2) 13.5 13.0 50 10.0 350
Reported earnings per share (cents) 46.5 40.7 14 34.0 37
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
2 Change is the basis points (bps) difference between the two periods
rather than the percentage change
3 Not meaningful
Page 04
Group Chief Financial Officer's review continued
The Group delivered a strong performance in the first quarter of 2024. The
Group's underlying profit before tax of $2.1 billion was an increase of 27 per
cent year-on-year at constant currency. Underlying operating income grew 20
per cent at constant currency to $5.2 billion and was up 14 per cent at
constant currency excluding two notable items totalling $234 million relating
to gains on revaluation of FX positions in Egypt and a hyperinflationary
accounting adjustment in Ghana. Underlying net interest income was up 5 per
cent at constant currency, underlying non NII increased 37 per cent or up 25
per cent at constant currency excluding the impact of the two notable items.
The net interest margin increased 6 basis points to 176 basis points in the
quarter, as the Group benefitted from the one month impact of the roll-off of
short-term hedges and improved liability mix. Underlying expenses increased 6
per cent at constant currency driven higher by inflation and business growth
initiatives. Income-to-cost jaws were positive in the quarter. Credit
impairment charges of $176 million in the quarter were equivalent to an
annualised loan-loss rate of 23 basis points and benefitted from a net nil
charge in Corporate & Investment Banking (CIB).
The Group remains well capitalised and highly liquid with a diverse and stable
deposit base. The liquidity coverage ratio of 146 per cent was 1 percentage
point higher on the prior quarter, reflecting disciplined asset and liability
management. The common equity tier 1 (CET1) ratio of 13.6 per cent remains
robust and stable post the impact of the full $1 billion share buyback
announced in February 2024 with profit accretion in the first quarter offset
by growth in Risk-weighted assets (RWA)..
All commentary that follows is on an underlying basis and comparisons are made
to the equivalent period in 2023 on a reported currency basis, unless
otherwise stated.
• Underlying operating income of $5.2 billion was up 17 per cent or 20 per
cent at constant currency driven by strong business activity and the continued
benefit of higher interest rates. Excluding the two notable items of $234
million relating to translation gains on revaluation of FX positions in Egypt
and a hyperinflationary accounting adjustment in Ghana, income increased 14
per cent at constant currency
• Underlying net interest income increased 3 per cent, or 5 per cent at
constant currency. The net interest margin increased 13 basis points as the
Group increased its pricing on assets and the yield on its Treasury portfolio
more quickly than it repriced its liability base, reflecting strong pricing
discipline and passthrough rate management as interest rates increased in key
footprint currencies. The net interest margin also benefitted from a $97
million increase from the roll-off of the loss-making short-term hedges. The
improvement in margin was in part offset by lower asset volumes, partly due to
currency translation
• Underlying non NII increased 33 per cent driven by strong performances
in Wealth Solutions, Banking and Markets as well as the inclusion of two
notable items under Treasury and Other income. Excluding the two notable items
of $234 million, underlying non NII was up 25 per cent at constant currency.
An accounting asymmetry resulting from Treasury management of FX positions
also contributed to an increase in underlying non NII, with a partial offset
from reduced underlying net interest income
• Underlying operating expenses increased 4 per cent, or 6 per cent at
constant currency. This growth reflected the impact of inflation and the
Group's continued investment into business growth initiatives including Wealth
& Retail Banking (WRB) relationship managers and CIB capabilities. The
Group generated positive income-to-cost jaws of 13 per cent at constant
currency
• Credit impairment was a $176 million charge in the quarter with a $136
million charge in WRB and a $28 million charge in Ventures primarily from Mox.
There was a net nil charge in CIB for the quarter as the charges including $10
million relating to the China commercial real estate sector were offset by
releases in other parts of the portfolio. The loan-loss rate for the quarter
annualises to 23 basis points
• Other impairment charge of $60 million was related to the write-off of
software assets and had no impact on our capital ratios
• Profit from associates and joint ventures decreased $12 million to a $1
million loss as profits at China Bohai Bank (Bohai) reduced
• Restructuring, DVA and Other items totalled $215 million. Other items
include $100 million provision for participation in a compensation scheme
recommended by the Korean Financial Supervisory Service in respect of the
Korea equity linked securities (ELS) portfolio. Restructuring charges were $55
million while movements in Debit Valuation Adjustment (DVA) were a negative
$48 million
• Taxation was $519 million on a reported basis, with an underlying
effective tax rate of 26.5 per cent compared to the prior year rate of 26.3
per cent
• Underlying return on tangible equity (RoTE) increased by 330 basis
points to 15.2 per cent due to higher profits. On a reported basis, RoTE
increased 50 basis points to 13.5 per cent with underlying profits in part
offset by a negative movement in DVA and the provision in relation to Korea
ELS and Restructuring
Page 05
Group Chief Financial Officer's review continued
Operating income by product(2)
Q1'24 Q1'23(2) Change Constant currency change¹ Q4'23(2) Change Constant currency change¹
$million
$million
%
%
$million
%
%
Transaction Services 1,615 1,572 3 4 1,659 (3) (3)
Payments and Liquidity 1,161 1,094 6 7 1,207 (4) (4)
Securities & Prime Services 141 141 - 1 140 1 1
Trade & Working Capital 313 337 (7) (2) 312 - -
Banking 472 411 15 17 400 18 18
Lending & Financial Solutions 414 353 17 20 358 16 16
Capital Markets & Advisory 58 58 - - 42 38 36
Markets 1,041 922 13 17 534 95 97
Macro Trading 884 786 12 16 463 91 93
Credit Trading 167 121 38 44 92 82 84
Valuation & Other Adj (10) 15 (167) (171) (21) 52 47
Wealth Solutions 616 511 21 23 412 50 50
CCPL & Other Unsecured Lending 287 290 (1) 1 288 - (1)
Deposits 908 803 13 14 933 (3) (3)
Mortgages & Other Secured Lending 103 161 (36) (34) 57 81 84
Treasury 43 (233) 118 118 (235) 118 119
Other 67 (41) nm(3) nm(3) (24) nm(3) nm(3)
Total underlying operating income 5,152 4,396 17 20 4,024 28 28
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Products are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2024. Prior periods have been restated
and there is no change in total income
3 Not meaningful
The operating income by product commentary that follows is on an underlying
basis and comparisons are made to the equivalent period in 2023 on a constant
currency basis, unless otherwise stated.
Transaction Services income increased 4 per cent. Payments and Liquidity was
up by 7 per cent driven by higher volumes and margin growth from disciplined
passthrough rate management in a continued high interest rate environment.
This was partly offset by lower Trade & Working Capital income which
decreased 2 per cent reflecting margin compression and lower volumes.
Banking income increased 17 per cent as Lending & Financial Solutions grew
20 per cent from higher origination and distribution volumes and increased
deal completion leading to improved distribution fee income. Capital Market
& Advisory income was stable.
Markets income was up 17 per cent with broad based growth across all products
driven primarily by episodic income from market volatility in select
geographies whilst Commodities benefitted from higher metals and energy
prices.
Wealth Solutions income was up 23 per cent off the back of strong leading
indicators with continued momentum in Affluent new to bank client onboarding
and net new money which doubled year-on-year to $11 billion. This led to
broad-based growth across all products.
CCPL & Other Unsecured Lending income was up 1 per cent with volume growth
in Personal Loans in part offset by lower Credit Card fee income.
Deposits income increased 14 per cent from higher volumes in term deposits,
and active passthrough rate management in a higher rate environment.
Mortgages & Other Secured Lending income was down 34 per cent on the back
of lower mortgage volumes particularly in Korea and Hong Kong, and margin
compression which in part reflect the impact of the Best Lending Rate cap in
Hong Kong restricting the ability to reprice mortgages despite an increase in
funding costs from higher interest rates.
Treasury income increased by $276 million benefitting from $158 million
translation gains on revaluation of United States Dollar (USD) FX positions in
Egypt. The gains arose as the Egypt branch capital is held in USD but the
functional currency is the Egyptian Pound (EGP) which has devalued over time
and in accordance with IAS 21 'The Effects of Changes in Foreign Exchange
Rates' has resulted in a gain on revaluation of monetary assets and
liabilities. The income is offset by a loss in the currency translation
reserve resulting in no impact on the Group's capital ratios. Future income
adjustments could arise if the EGP exchange rate with the USD continues to
move. Treasury also benefitted from the roll-off of short-term hedges which
contributed a $97 million increase in income year-on-year. The loss-making
short-term hedges rolled off in part at the end of February 2023 and the
remaining tranche matured at the end of February 2024.
Page 06
Group Chief Financial Officer's review continued
Other products of $67 million include $76 million from Ghana being deemed a
hyperinflationary economy for accounting purposes. The results of Ghana
operations have been prepared in accordance with IAS 29 'Financial Reporting
in Hyperinflationary Economies' as if the economy had always been
hyperinflationary. The results of those operations for the period ended 31
March 2024 are stated in terms of current purchasing power using the consumer
price index (CPI), with the corresponding adjustment presented in the profit
and loss account. In accordance with IAS 21, the results have been translated
and presented in USD at the prevailing rate of exchange on 31 March 2024.
Profit before tax by client segment
Q1'24 Q1'23 Change Constant currency change¹ Q4'23 Change Constant currency change¹
$million
$million
%
%
$million
%
%
Corporate & Investment Banking(2) 1,639 1,485 10 13 1,266 29 28
Wealth & Retail Banking(2) 729 677 8 8 445 64 61
Ventures (112) (103) (9) (9) (133) 16 16
Central & other items (127) (353) 64 64 (522) 76 76
Underlying profit before taxation 2,129 1,706 25 27 1,056 102 100
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
2 CCIB and CPBB segments have been renamed to CIB and WRB
respectively, to reflect the RNS on Presentation of Financial Information
issued on 2 April 2024
The client segment commentary that follows is on an underlying basis and
comparisons are made to the equivalent period in 2023 on a constant currency
basis, unless otherwise stated.
Corporate & Investment Banking (CIB) profit before taxation increased 13
per cent. Income grew 10 per cent with strong double-digit growth in Markets,
from higher episodic income and growth in flow income, and Banking, which
benefitted from higher origination and distribution volumes. Expenses were 3
per cent higher with a net nil impairment charge.
Wealth & Retail Banking (WRB) profit before taxation increased 8 per cent,
with income up 10 per cent benefitting from the impact of active passthrough
management in Deposits and continued strong momentum in Wealth Solutions,
partly offset by lower Mortgage income. Expenses increased 4 per cent while
credit impairment charge was $74 million higher following a non-repeat of
prior year overlay releases.
Ventures loss increased by $9 million to $112 million reflecting the Group's
continued investment in transformational digital initiatives. Income increased
by $15 million but this was partly offset by an increase in expenses of $11
million. The impairment charge increased $18 million to $28 million reflecting
increased bankruptcy related write-offs in Mox and the build-up of expected
credit loss provisions as the credit portfolios grew.
Central & other items recorded a loss of $127 million just over one third
of the prior period loss. Treasury income increased by $280 million mostly
from translation gains on revaluation of FX positions in Egypt of $158 million
and benefited from the roll-off of the short-term hedges of $97 million. Other
products increased by $93 million of which $76 million is related to a
hyperinflationary accounting adjustment in Ghana. Expenses increased by $78
million from project costs and other items that are temporarily held centrally
before recharging to client segments, whilst there was a credit impairment
charge of $12 million from sovereign-related exposures. Associates income
reduced by $17 million reflecting lower profits at Bohai.
Adjusted net interest income and margin
Q1'24 Q1'23 Change¹ Q4'23 Change¹
$million
$million
%
$million
%
Adjusted net interest income(2) 2,429 2,340 4 2,397 1
Average interest-earning assets 553,710 582,557 (5) 558,183 (1)
Average interest-bearing liabilities 537,161 538,969 - 537,916 -
Gross yield (%)(3) 5.18 4.37 81 4.98 20
Rate paid (%)(3) 3.52 2.97 55 3.40 12
Net yield (%)(3) 1.66 1.40 26 1.58 8
Net interest margin (%)(3,4) 1.76 1.63 13 1.70 6
1 Variance is better/(worse) other than assets and liabilities which
is increase/(decrease)
2 Adjusted net interest income is reported net interest income less
funding costs for the trading book, financial guarantee fees and others on
interest-earning assets
3 Change is the basis points (bps) difference between the two periods
rather than the percentage change
4 Adjusted net interest income divided by average interest-earning assets,
annualised
5 Not meaningful
Page 07
Group Chief Financial Officer's review continued
Adjusted net interest income increased 4 per cent due to 8 per cent increase
in the net interest margin which averaged 176 basis points in the quarter,
increasing 13 basis points year-on-year and 6 basis points compared to the
prior quarter with a benefit from the one month roll-off of the loss-making
short-term hedges and improved liabilities mix partly offset by an accounting
asymmetry resulting from Treasury management of FX positions.
• Average interest-earning assets decreased 1 per cent in the quarter
primarily from lower Treasury assets. Gross yields increased 20 basis points
compared to the prior quarter, benefitting from continued higher interest
rates, one month benefit from the roll-off of the short-term hedge and
improved mix in part from the roll-off of Treasury assets and Mortgages in WRB
• Average interest-bearing liabilities were broadly stable on the prior
quarter as growth in customer accounts was offset by lower Treasury balances.
The rate paid on liabilities increased 12 basis points compared with the
average in the prior quarter, reflecting the impact of interest rate movements
which were partly offset by an improved liability mix
Credit risk summary
Income Statement (Underlying view)
Q1'24 Q1'23 Change(1) Q4'23 Change(1)
$million
$million
%
$million
%
Total credit impairment charge 176 26 nm(3) 62 184
Of which stage 1 and 2(2) 61 6 nm(3) 4 nm(3)
Of which stage 3(2) 115 20 nm(3) 58 98
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
2 Refer to Credit Impairment charge table in Risk review section for
reconciliation from underlying to reported credit impairment
3 Not meaningful
Balance sheet
31.03.24 31.12.23 Change(1) 31.03.23 Change(1)
$million
$million
%
$million
%
Gross loans and advances to customers(2) 288,643 292,145 (1) 305,975 (6)
Of which stage 1 272,133 273,692 (1) 286,335 (5)
Of which stage 2 9,520 11,225 (15) 12,216 (22)
Of which stage 3 6,990 7,228 (3) 7,424 (6)
Expected credit loss provisions (5,240) (5,170) 1 (5,348) (2)
Of which stage 1 (478) (430) 11 (507) (6)
Of which stage 2 (359) (420) (15) (446) (20)
Of which stage 3 (4,403) (4,320) 2 (4,395) -
Net loans and advances to customers 283,403 286,975 (1) 300,627 (6)
Of which stage 1 271,655 273,262 (1) 285,828 (5)
Of which stage 2 9,161 10,805 (15) 11,770 (22)
Of which stage 3 2,587 2,908 (11) 3,029 (15)
Cover ratio of stage 3 before/after collateral (%)(3) 63 / 81 60 / 76 3 / 5 59 / 79 4 / 2
Credit grade 12 accounts ($million) 1,009 2,155 (53) 1,642 (39)
Early alerts ($million) 4,933 5,512 (11) 5,351 (8)
Investment grade corporate exposures (%)(3) 72 73 (1) 75 (3)
1 Variance is increase/(decrease) comparing current reporting period to
prior reporting periods
2 Includes reverse repurchase agreements and other similar secured lending
held at amortised cost of $11,290 million at 31 March 2024, $13,996 million at
31 December 2023 and $14,398 million at 31 March 2023
3 Change is the percentage points difference between the two points rather
than the percentage change
Page 08
Group Chief Financial Officer's review continued
Asset quality remained resilient in the first quarter, with an improvement in
a number of underlying credit metrics.
The Group continues to actively manage the credit portfolio whilst remaining
alert to a volatile and challenging external environment including increased
geopolitical tensions which has led to idiosyncratic stress in a select number
of geographies and industry sectors.
Credit impairment was a $176 million charge in the quarter, up $150 million
year-on-year and up $114 million compared to the prior quarter representing an
annualised loan-loss rate of 23 basis points. The increase primarily reflects
a lower level of impairment releases. There was a $136 million charge in WRB
reflecting a level of charge broadly in line with recent quarters. There was a
$28 million charge in Ventures primarily from Mox albeit delinquency and flow
rates have improved as a result of adjusted credit criteria. In CIB, there was
a net nil charge in the quarter which included a charge of $10 million
relating to the China commercial real estate sector, net of a $12 million
decrease in the management overlay which now totals $129 million. The Group
has provided $1.2 billion in total in relation to the China commercial real
estate sector. There was a net charge of $12 million from increases in
sovereign related exposures. Excluding the China commercial real estate
portfolio and sovereign-related exposures, there was also a net release
relating to historical provisions of Corporate exposures.
Gross stage 3 loans and advances to customers of $7 billion were 6 per cent
lower, as repayments, client upgrades, reduction in exposures and write-offs
more than offset new inflows. Credit-impaired loans represent 2.4 per cent of
gross loans and advances, broadly flat on the prior quarter.
The stage 3 cover ratio of 63 per cent increased by 3 percentage points
compared to 31 December 2023, while the cover ratio post collateral at 81 per
cent increased by 5 percentage points due to an increase in stage 3 provisions
and a reduction in gross stage 3 balances.
Credit grade 12 balances decreased $1.1 billion since 31 December 2023 to $1.0
billion mostly from the expected reversal of an existing sovereign related
exposure from reverse repurchase agreements to investment securities. Early
alert accounts of $4.9 billion decreased by $0.6 billion due to net upgrades
relating to a select number of clients. The Group is continuing to carefully
monitor its exposures in vulnerable sectors and select geographies, given the
unusual stresses caused by the currently difficult macro-economic environment.
The proportion of investment grade corporate exposures has decreased by 1
percentage point since 31 December 2023 to 72 per cent.
Restructuring, goodwill impairment and other items
Q1'24 Q1'23 Q4'23
Restructuring Goodwill and other impairment DVA Other Restructuring Goodwill and other impairment DVA Other Restructuring Goodwill and other impairment(1) DVA Other
$million
$million
$million
items
$million
$million
$million
items
$million
$million
$million
items
$million
$million
$million
Operating income 38 - (48) (12) 110 - 54 - 48 - 35 262
Operating expenses (111) - - (100) (75) - - - (151) - - -
Credit impairment 11 - - - 6 - - - 7 - - -
Other impairment - - - - - - - - (3) (153) - -
Profit from associates and joint ventures 7 - - - 7 - - - 36 - - -
Profit/(loss) before taxation (55) - (48) (112) 48 - 54 - (63) (153) 35 262
1 Goodwill and other impairment include $153 million impairment
charge relating to the Group's investment in its associate China Bohai Bank
(Bohai).
The Group's reported performance is adjusted for profits or losses of a
capital nature, amounts consequent to investment transactions driven by
strategic intent, other infrequent and/or exceptional transactions that are
significant or material in the context of the Group's normal business earnings
for the period and items which management and investors would ordinarily
identify separately when assessing underlying performance period-by period.
Restructuring charge of $55 million reflects the impact of actions to
transform the organisation to improve productivity, primarily technology
related costs and additional redundancy charges with a small single-digit
amount related to the Fit for Growth programme and partly offset by gains on
the remaining Principal Finance portfolio.
Movements in DVA were negative $48 million driven by the tightening of Group's
asset swap spreads on derivative liability exposures. The size of the
portfolio subject to DVA did not change materially in the quarter.
Page 09
Group Chief Financial Officer's review continued
Other items loss of $112 million includes a $100 million provision for
participation in a compensation scheme in line with recommendations of the
Financial Supervisory Service (FSS) in respect of the Korea ELS portfolio.
Standard Chartered Bank Korea (SCBK) sold ELS to customers, the redemption
values of which are determined by the performance of various stock indices,
with a notional value of approximately $900 million. Due to the performance of
the Hang Seng China Enterprise Index (HSCEI), some ELS have matured at a loss
and it is anticipated additional customers may redeem ELS at a loss. The
provision reflects those ELS portfolio losses for which SCBK is expected to
compensate customers based on the level of the HSCEI as of 31 March 2024. The
value of anticipated losses is subject to fluctuation as ELS mature on various
dates through March 2025.
Balance sheet and liquidity
31.03.24 31.12.23 Change¹ 31.03.23 Change¹
$million
$million
%
$million
%
Assets
Loans and advances to banks 39,698 44,977 (12) 38,216 4
Loans and advances to customers 283,403 286,975 (1) 300,627 (6)
Other assets 489,424 490,892 - 481,835 2
Total assets 812,525 822,844 (1) 820,678 (1)
Liabilities
Deposits by banks 29,691 28,030 6 26,889 10
Customer accounts 459,386 469,418 (2) 462,169 (1)
Other liabilities 272,609 275,043 (1) 281,609 (3)
Total liabilities 761,686 772,491 (1) 770,667 (1)
Equity 50,839 50,353 1 50,011 2
Total equity and liabilities 812,525 822,844 (1) 820,678 (1)
Advances-to-deposits ratio (%)² 54.3% 53.3% 56.2%
Liquidity coverage ratio (%) 146% 145% 161%
1 Variance is increase/(decrease)comparing current reporting period
to prior reporting periods
2 The Group now excludes $21,258 million held with central banks
(31.12.23: $20,710 million, 31.03.23: $24,173 million) that has been confirmed
as repayable at the point of stress. Advances exclude reverse repurchase
agreement and other similar secured lending of $11,290 million (31.12.23:
$13,996 million) and include loans and advances to customers held at fair
value through profit or loss of $7,950 million (31.12.23: $7,212 million).
Deposits include customer accounts held at fair value through profit or loss
of $17,595 million (31.12.23: $17,248 million)
The Group's balance sheet remains strong, liquid and well diversified.
• Loans and advances to customers decreased by $4 billion or 1 per cent
from 31 December 2023 to $283 billion and up $4 billion on an underlying basis
with growth in CIB offset by an expected decline in Mortgages in WRB. The
underlying increase excludes the impact of a $4 billion reduction from
Treasury and securities based loans held to collect and $4 billion reduction
from currency translation
• Customer accounts of $459 billion decreased by $10 billion or 2 per cent
from 31 December 2023. Excluding a $4 billion reduction from currency
translation, customer accounts reduced by $6 billion, or 1 per cent, with
lower balances in CIB CASA from month-end client activity, substantially
returned post quarter end, partly offset by an increase in term deposits in
WRB
• Other assets were broadly flat on the prior quarter with increased
financial assets held at fair value through profit or loss reflecting growth
in the Trading book offset by a decrease in cash and balances held at central
banks and lower derivative balances. Other liabilities decreased 1 per cent
from a decrease in derivative liability balances
The advances-to-deposits ratio increased to 54.3 per cent from 53.3 per cent
as at 31 December 2023. The point-in-time liquidity coverage ratio increased 1
percentage point in the quarter to 146 per cent and remains well above the
minimum regulatory requirement.
Page 10
Group Chief Financial Officer's review continued
Risk-weighted assets
31.03.24 31.12.23 Change¹ 31.03.23 Change¹
$million
$million
%
$million
%
By risk type
Credit risk 193,009 191,423 1 200,632 (4)
Operational risk 29,805 27,861 7 27,861 7
Market risk 29,302 24,867 18 22,400 31
Total RWAs 252,116 244,151 3 250,893 0
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
Total risk-weighted assets of $252.1 billion increased $8 billion or 3 per
cent from 31 December 2023.
• Credit risk RWA increased by $1.6 billion in the first quarter to $193
billion. There was a $2.1 billion increase from asset mix reflecting a
reduction in lower risk-weight Treasury assets and mortgages in WRB offset by
growth in CIB assets. There was also an $1.3 billion increase from model and
methodology changes, partly offset by a $2.2 billion reduction from currency
translation
• Operational risk RWA is mechanically higher by $1.9 billion due to an
increase in average income as measured over a rolling three-year time horizon,
with higher 2023 income replacing lower 2020 income
• Market risk RWA increased $4.4 billion to $29.3 billion as RWA was
deployed to help clients capture opportunities in Markets
Capital base and ratios
31.03.24 31.12.23 Change¹ 31.03.23 Change¹
$million
$million
%
$million
%
CET1 capital 34,279 34,314 - 34,402 -
Additional Tier 1 capital (AT1) 6,486 5,492 18 5,492 18
Tier 1 capital 40,765 39,806 2 39,894 2
Tier 2 capital 11,773 11,935 (1) 12,424 (5)
Total capital 52,538 51,741 2 52,318 -
CET1 capital ratio(%)² 13.6 14.1 (0.5) 13.7 (0.1)
Total capital ratio(%)² 20.8 21.2 (0.4) 20.9 (0.1)
Leverage ratio (%)² 4.8 4.7 0.1 4.7 0.1
1 Variance is increase/(decrease) comparing current reporting period
to prior reporting periods
2 Change is percentage points difference between two points rather
than percentage change
The Group's CET1 ratio of 13.6 per cent was broadly stable post the full
impact of the $1 billion share buyback announced in February 2024, underlying
profit accretion was offset by increased RWAs. The CET1 ratio remains 3.1
percentage points above the Group's latest regulatory minimum of 10.5 per
cent.
The 58 basis points of CET1 capital accretion from profits was offset by 57
basis points impact from an increase in RWA. A further 11 basis points uplift
was the result of other comprehensive income from fair value gains and
regulatory capital adjustments whilst an FX impact decreased the ratio by 7
basis points.
The Group is part way through the $1 billion share buyback programme which it
announced on 23 February 2024, and by 31 March 2024 had spent $437 million
purchasing 52 million ordinary shares, reducing the share count by
approximately 2 per cent. Even though the share buyback was still ongoing on
31 March 2024, the entire $1 billion is deducted from CET1 in the period.
The Group is accruing a provisional interim 2024 ordinary share dividend over
the first half of 2024, which is calculated formulaically at one third of the
ordinary dividend paid in 2023 or 9 cents a share. Half of this amount was
accrued in the first quarter and combined with payments due to AT1 and
preference shareholders reduced the CET1 ratio by 10 basis points.
The Group's leverage ratio of 4.8 per cent is 7 basis points higher than as at
31 December 2023. This is primarily driven by increased Tier 1 capital
following a $1 billion issuance of AT1 instruments in the first quarter. This
was in part offset by increased leverage exposures as a reduction in benefits
from regulatory adjustments more than offset a reduction in balance sheet
assets. The Group's leverage ratio remains significantly above its minimum
requirement of 3.7 per cent.
Page 11
Group Chief Financial Officer's review continued
Outlook
The start to the year has been strong and the momentum we see across our
businesses gives us confidence in the delivery of our financial targets set
out in February. We are maintaining our 2024 guidance:
• Operating income to increase around the top of 5-7 per cent range in
2024, excluding the two notable items in Q1'24
• Net interest income for 2024 of $10 billion to $10.25 billion, at
constant currency
• Positive income-to-cost jaws, excluding UK bank levy, at constant
currency in 2024
• Low single-digit percentage growth in loans and advances to customers
and RWA in 2024
• Continue to expect loan-loss ratio to normalise towards the historical
through the cycle 30 to 35 basis points range
• Continue to operate dynamically within the full 13-14 per cent CET1
ratio target range
• Continue to increase full-year dividend per share over time
• RoTE increasing steadily from 10 per cent, targeting 12 per cent in 2026
and to progress thereafter
Diego De Giorgi
Group Chief Financial Officer
02 May 2024
Page 12
Supplementary financial information
Underlying performance by client segment
Q1'24
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Operating income 3,115 1,917 32 88 5,152
External 2,545 888 32 1,687 5,152
Inter-segment 570 1,029 - (1,599) -
Operating expenses (1,423) (1,047) (113) (203) (2,786)
Operating profit/(loss) before impairment losses and taxation 1,692 870 (81) (115) 2,366
Credit impairment - (136) (28) (12) (176)
Other impairment (53) (5) - (2) (60)
Profit from associates and joint ventures - - (3) 2 (1)
Underlying profit/(loss) before taxation 1,639 729 (112) (127) 2,129
Restructuring (11) (19) - (25) (55)
DVA (48) - - - (48)
Other Items - (100) - (12) (112)
Reported profit/(loss) before taxation 1,580 610 (112) (164) 1,914
Total assets 415,090 124,456 4,916 268,063 812,525
Of which: loans and advances to customers(1) 190,083 122,089 1,024 25,725 338,921
loans and advances to customers 134,578 122,078 1,024 25,723 283,403
loans held at fair value through profit or loss 55,505 11 - 2 55,518
Total liabilities 450,072 201,870 3,967 105,777 761,686
Of which: customer accounts(1) 310,079 197,121 3,694 10,610 521,504
Risk-weighted assets 150,600 52,706 2,084 46,726 252,116
Income return on risk-weighted assets (%) 8.5 14.7 7.2 0.7 8.3
Underlying return on tangible equity (%) 23.0 28.8 nm² (16.7) 15.2
Cost to income ratio (excluding bank levy) (%) 45.7 54.6 nm² nm² 54.1
Q1'23
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Operating income 2,892 1,772 17 (285) 4,396
External 2,313 1,126 17 940 4,396
Inter-segment 579 646 - (1,225) -
Operating expenses (1,415) (1,033) (102) (125) (2,675)
Operating profit/(loss) before impairment losses and taxation 1,477 739 (85) (410) 1,721
Credit impairment 8 (62) (10) 38 (26)
Other impairment - - - - -
Profit from associates and joint ventures - - (8) 19 11
Underlying profit/(loss) before taxation 1,485 677 (103) (353) 1,706
Restructuring 39 (2) - 11 48
DVA 54 - - - 54
Reported profit/(loss) before taxation 1,578 675 (103) (342) 1,808
Total assets 394,873 130,669 2,683 292,453 820,678
Of which: loans and advances to customers(1) 181,335 128,102 812 36,816 347,065
loans and advances to customers 134,927 128,079 812 36,809 300,627
loans held at fair value through profit or loss 46,408 23 - 7 46,438
Total liabilities 476,993 188,050 1,955 103,669 770,667
Of which: customer accounts(1) 335,996 182,856 1,767 5,792 526,411
Risk-weighted assets 148,550 50,621 1,627 50,095 250,893
Income return on risk-weighted assets (%) 8.0 14.1 5.5 (2.3) 7.1
Underlying return on tangible equity (%) 21.2 28.0 nm² (25.8) 11.9
Cost to income ratio (excluding bank levy) (%) 48.9 58.3 nm² nm² 60.9
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
2 Not meaningful
Page 13
Supplementary financial information continued
Corporate & Investment Banking
Q1'24 Q1'23 Change(2 Constant currency change(1,2 Q4'23 Change(2 Constant currency change(1,2
$million
$million ) % ) %
$million ) % ) %
Operating income 3,115 2,892 8 10 2,581 21 21
Transaction Services³ 1,603 1,561 3 4 1,647 (3) (3)
Payments and Liquidity 1,161 1,094 6 7 1,207 (4) (4)
Securities & Prime Services 141 141 - 1 140 1 1
Trade & Working Capital 301 326 (8) (2) 300 - -
Banking³ 472 411 15 17 400 18 18
Lending & Financial Solutions 414 353 17 20 358 16 16
Capital Markets & Advisory 58 58 - - 42 38 36
Markets³ 1,041 922 13 17 534 95 97
Macro Trading 884 786 12 16 463 91 93
Credit Trading 167 121 38 44 92 82 84
Valuation & Other Adj (10) 15 (167) (171) (21) 52 47
Other (1) (2) 50 50 - nm(7) nm(7)
Operating expenses (1,423) (1,415) (1) (3) (1,422) - (1)
Operating profit before impairment losses and taxation 1,692 1,477 15 17 1,159 46 44
Credit impairment - 8 (100) nm(7) 105 (100) (103)
Other impairment (53) - nm(7) nm(7) 2 nm(7) nm(7)
Underlying profit before taxation 1,639 1,485 10 13 1,266 29 28
Restructuring (11) 39 (128) (131) (52) 79 78
DVA (48) 54 (189) (189) 35 nm(7) nm(7)
Other items - - nm(7) nm(7) 262 (100) (100)
Reported profit before taxation 1,580 1,578 - 3 1,511 5 4
Total assets 415,090 394,873 5 7 403,058 3 4
Of which: loans and advances to customers(4) 190,083 181,335 5 7 189,395 - 2
Total liabilities 450,072 476,993 (6) (5) 464,968 (3) (3)
Of which: customer accounts(4) 310,079 335,996 (8) (7) 328,211 (6) (5)
Risk-weighted assets 150,600 148,550 1 nm(7) 141,979 6 nm(7)
Income return on risk-weighted assets (%)(5) 8.5 8.0 50bps nm(7) 7.3 120bps nm(7)
Underlying return on tangible equity (%)(5) 23.0 21.2 180bps nm(7) 18.5 450bps nm(7)
Cost to income ratio (%)(6) 45.7 48.9 3.2 3.3 55.1 9.4 8.9
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse), except for risk-weighted assets, assets and
liabilities which is increase/(decrease)
3 Products are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2024. Prior periods have been restated
and there is no change in total income
4 Loans and advances to customers includes FVTPL and customer accounts
includes FVTPL and repurchase agreements
5 Change is the basis points (bps) difference between the two periods
rather than the percentage change
6 Change is the percentage points difference between the two periods
rather than the percentage change
7 Not meaningful
Page 14
Supplementary financial information continued
Performance highlights
• Underlying profit before tax of $1,639 million was up 13 per cent at
constant currency (ccy) mainly driven by higher income partly offset by higher
expenses and other impairment
• Underlying operating income of $3,115 million was up 10 per cent at ccy,
driven by strong double-digit growth in Markets with broad based growth across
all products driven primarily by episodic income from volatility in select
markets, whilst Commodities benefitted from higher metals and energy prices.
Banking also performed strongly with Lending & Financial Solutions up 20
per cent from higher origination and distribution volumes. Transaction
Services income increased 4 per cent, within which, Payments and Liquidity was
up 7 per cent driven by higher volumes and margin growth from disciplined
passthrough rates management, in a continued higher interest rate environment.
This was partly offset by lower Trade & Working Capital income which
decreased 2 per cent reflecting margin compression and lower volumes
• Underlying operating expenses increased 3 per cent at ccy largely due to
inflation and business growth initiatives
• Credit impairment was a net nil charge in the quarter, as the charge of
$10 million relating to the China commercial real estate sector was offset by
releases in other parts of the portfolio. Other impairment was primarily
related to the write-off of software assets
• Risk-weighted assets (RWA) of $151 billion was up $9 billion since 31
December 2023 mainly from increased market risk RWA deployed to help clients
realise income opportunities within Markets and mechanically higher
operational risk RWA, and corporate lending asset growth
• RoTE increased 1.8 percentage points to 23.0 per cent from 21.2 per cent
in Q1'23
Page 15
Supplementary financial information continued
Wealth & Retail Banking
Q1'24 Q1'23(3) Change(2) Constant currency change(1,2) Q4'23(3) Change(2) Constant currency change(1,2)
$million
$million
%
%
$million
%
%
Operating income 1,917 1,772 8 10 1,701 13 13
Transaction Services(3) 12 11 9 9 12 - -
Payments and Liquidity - - nm(7) nm(7) - nm(7) nm(7)
Trade & Working Capital 12 11 9 9 12 - -
Wealth Solutions³ 616 511 21 23 412 50 50
CCPL & Other Unsecured Lending 260 275 (5) (3) 259 - -
Deposits(3) 917 813 13 14 951 (4) (4)
Mortgages & Other Secured Lending(3) 103 161 (36) (34) 57 81 84
Other 9 1 nm(7) nm(7) 10 (10) -
Operating expenses (1,047) (1,033) (1) (4) (1,121) 7 6
Operating profit before impairment losses and taxation 870 739 18 18 580 50 49
Credit impairment (136) (62) (119) (127) (131) (4) (5)
Other impairment (5) - nm(7) nm(7) (4) (25) (67)
Underlying profit before taxation 729 677 8 8 445 64 61
Restructuring (19) (2) nm(7) nm(7) (27) 30 25
Other items (100) - nm(7) nm(7) - nm(7) nm(7)
Reported profit before taxation 610 675 (10) (10) 418 46 43
Total assets 124,456 130,669 (5) (3) 128,768 (3) (1)
Of which: loans and advances to customers(4) 122,089 128,102 (5) (3) 126,117 (3) (1)
Total liabilities 201,870 188,050 7 9 200,263 1 2
Of which: customer accounts(4) 197,121 182,856 8 9 195,678 1 2
Risk-weighted assets 52,706 50,621 4 nm(7) 51,342 3 nm(7)
Income return on risk-weighted assets (%)(5) 14.7 14.1 60bps nm(7) 13.2 150bps nm(7)
Underlying return on tangible equity (%)(5) 28.8 28.0 80bps nm(7) 17.9 1,090bps nm(7)
Cost to income ratio (%)(6) 54.6 58.3 3.7 3.2 65.9 11.3 10.9
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse), except for risk-weighted assets, assets and
liabilities which is increase/(decrease)
3 Products are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2024. Prior periods have been restated
and there is no change in total income
4 Loans and advances to customers includes FVTPL and customer accounts
includes FVTPL and repurchase agreements
5 Change is the basis points (bps) difference between the two periods
rather than the percentage change
6 Change is the percentage points difference between the two periods
rather than the percentage change
7 Not meaningful
Performance highlights
• Underlying profit before tax of $729 million was up 8 per cent at
constant currency (ccy) mainly driven by higher income partly offset by higher
expenses and impairments
• Underlying operating income of $1,917 million was up 10 per cent at ccy
off the back of strong leading indicators with continued momentum in Affluent
new to bank client onboarding and net new money which doubled year-on-year to
$11 billion. This led to double digit growth across all products
• Underlying operating expenses increased 4 per cent at ccy, mainly from
inflation and investment in business growth initiatives, including
relationship managers
• Credit impairment of $136 million increased $74 million reflecting a
level of charge broadly in line with recent quarters
• Customer accounts increased 2 per cent at ccy since 31 December 2023 due
to strong growth driven by Affluent clients
• RoTE increased 80 basis points to 28.8 per cent from 28.0 per cent in
Q1'23
Page 16
Supplementary financial information continued
Ventures
Q1'24 Q1'23 Change(2) Constant currency change(1,2) Q4'23 Change(2) Constant currency change(1,2)
$million
$million
%
%
$million
%
%
Operating income 32 17 88 88 32 - (3)
Of which: SCV 3 3 - - 6 (50) (57)
Of which: Digital Banks(6) 29 14 107 107 26 12 12
CCPL & Other Unsecured Lending 27 15 80 80 29 (7) (7)
Deposits (9) (10) 10 10 (18) 50 50
Treasury 1 5 (80) (80) 10 (90) (89)
Other 13 7 86 86 11 18 -
Operating expenses (113) (102) (11) (11) (109) (4) (3)
Operating loss before impairment losses and taxation (81) (85) 5 5 (77) (5) (5)
Credit impairment (28) (10) (180) (180) (32) 13 13
Other impairment - - nm(7) nm(7) (17) nm(7) nm(7)
Profit from associates and joint ventures (3) (8) 63 63 (7) 57 57
Underlying loss before taxation (112) (103) (9) (9) (133) 16 16
Restructuring - - nm(7) nm(7) (3) 100 100
Reported loss before taxation (112) (103) (9) (9) (136) 18 18
Total assets 4,916 2,683 83 94 4,009 23 30
Of which: loans and advances to customers(3) 1,024 812 26 26 1,035 (1) -
Total liabilities 3,967 1,955 103 104 3,096 28 30
Of which: customer accounts(3) 3,694 1,767 109 110 2,825 31 32
Risk-weighted assets 2,084 1,627 28 nm(7) 1,923 (8) nm(7)
Income return on risk-weighted assets (%)(4) 7.2 5.5 170bps nm(7) 7.9 (70)bps nm(7)
Underlying return on tangible equity (%)(4) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
Cost to income ratio (%)(5) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
1 Comparisons presented on the basis of the current period's
transactional currency rate, ensuring like-for-like currency rates between the
two periods
2 Variance is better/(worse), except for risk-weighted assets, assets
and liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 Change is the percentage points difference between the two periods
rather than the percentage change
6 Digital Banks income include Mox and Trust bank
7 Not meaningful
Performance highlights
• Underlying loss before tax increased $9 million to $112 million
reflecting the Group's continued investment in transformational digital
initiatives. Income almost doubled to $32 million but this increase was offset
by increased expenses
• The impairment charge increased $18 million to $28 million reflecting
increased bankruptcy related write-offs in Mox and the build of expected
credit loss provisions as the credit portfolios grew
• Loans and advances to customers of $1 billion increased 26 per cent
year-on-year (YoY), whilst customer accounts of $3.7 billion increased 110 per
cent YoY, with strong growth in the two digital banks, Mox and Trust
Page 17
Supplementary financial information continued
Central & other items
Q1'24 Q1'23 Change(2) Constant currency change(1,2) Q4'23 Change(2) Constant currency change(1,2)
$million
$million
%
%
$million
%
%
Operating income 88 (285) 131 132 (290) 130 132
Treasury 42 (238) 118 118 (245) 117 118
Other 46 (47) 198 nm(7) (45) nm(7) nm(7)
Operating expenses (203) (125) (62) (69) (210) 3 8
Operating loss before impairment losses (115) (410) 72 72 (500) 77 77
and taxation
Credit impairment (12) 38 (132) (134) (4) nm(7) nm(7)
Other impairment (2) - nm(7) nm(7) (22) 91 91
Profit from associates and joint ventures 2 19 (89) (89) 4 (50) (50)
Underlying loss before taxation (127) (353) 64 64 (522) 76 76
Restructuring (25) 11 nm(7) nm(7) 19 nm(7) nm(7)
Goodwill & other impairment(6) - - nm(7) nm(7) (153) 100 100
Other items (12) - nm(7) nm(7) - nm(7) nm(7)
Reported loss before taxation (164) (342) 52 51 (656) 75 75
Total assets 268,063 292,453 (8) (7) 287,009 (7) (5)
Of which: loans and advances to customers(3) 25,725 36,816 (30) (29) 28,939 (11) (9)
Total liabilities 105,777 103,669 2 3 104,164 2 2
Of which: customer accounts(3) 10,610 5,792 83 87 7,908 34 35
Risk-weighted assets 46,726 50,095 (7) nm⁷ 48,907 (4) nm⁷
Income return on risk-weighted assets (%)(4) 0.7 (2.3) 300bps nm(7) (2.4) 310bps nm(7)
Underlying return on tangible equity (%)(4) (16.7) (25.7) 900bps nm(7) (18.8) 210bps nm(7)
Cost to income ratio (%) (excluding UK bank levy)(5) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7) nm(7)
1 Comparisons presented on the basis of the current period's transactional
currency rate, ensuring like-for-like currency rates between the two periods
2 Variance is better/(worse), except for risk-weighted assets, assets and
liabilities which is increase/(decrease)
3 Loans and advances to customers includes FVTPL and customer accounts
includes FVTPL and repurchase agreements
4 Change is the basis points (bps) difference between the two periods
rather than the percentage change
5 Change is the percentage points difference between the two periods
rather than the percentage change
6 Goodwill and other impairment include $153 million impairment charge
relating to the Group's investment in its associate China Bohai Bank (Bohai)
7 Not meaningful
Performance highlights
• Underlying loss before tax of $127 million just over one-third of the
prior period loss with higher income partly offset by $78 million higher
expenses from project costs and other items that are temporarily held
centrally before recharging to client segments whilst there was a credit
impairment charge of $12 million from sovereign-related exposures. Associate
income reduced by $17 million reflecting lower profits at China Bohai Bank
• Underlying operating income of $88 million in Q1'24 is $373 million
better year-on-year. Treasury income increased by $280 million mostly from
translation gains on revaluation of FX positions in Egypt of $158 million and
benefits from the roll-off of the short-term hedges of $97 million. Other
products increased $93 million of which $76 million relates to a
hyperinflationary accounting adjustment in Ghana
Page 18
Supplementary financial information continued
Underlying performance by key geography
Q1'24
Hong Kong Korea China Taiwan Singapore India UAE UK US Other(2,3) Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,145 296 322 159 670 337 237 83 256 1,647 5,152
Operating expenses (474) (171) (213) (83) (306) (220) (106) (232) (171) (810) (2,786)
Operating profit/(loss) before impairment losses and taxation 671 125 109 76 364 117 131 (149) 85 837 2,366
Credit impairment (39) (7) (44) (10) 3 (11) (3) (14) 1 (52) (176)
Other impairment (12) - (5) (1) (8) (6) (3) (16) (4) (5) (60)
Profit from associates and - - 2 - - - - (2) - (1) (1)
joint ventures
Underlying profit/(loss) before taxation 620 118 62 65 359 100 125 (181) 82 779 2,129
Total assets employed 198,501 51,199 43,959 22,209 106,277 35,858 24,559 141,084 74,178 114,701 812,525
Of which: loans and advances 88,136 29,721 17,525 11,177 63,469 14,685 9,114 28,114 24,325 52,657 338,923
to customers(1)
Total liabilities employed 181,755 42,146 37,470 20,781 112,289 27,487 17,715 102,065 62,176 157,802 761,686
Of which: customer accounts(1) 152,489 32,814 27,249 18,077 88,089 20,231 13,535 76,916 32,730 59,374 521,504
Q1'23
Hong Kong Korea China Taiwan Singapore India UAE UK US Other(3) Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,036 312 283 146 638 311 214 77 234 1,145 4,396
Operating expenses (485) (179) (222) (80) (290) (208) (95) (203) (170) (743) (2,675)
Operating profit/(loss) before impairment losses and taxation 551 133 61 66 348 103 119 (126) 64 402 1,721
Credit impairment (22) (15) (9) (22) 17 (3) 2 3 7 16 (26)
Other impairment - - - - - - (1) (8) - 9 -
Profit from associates and - - 17 - - - - - - (6) 11
joint ventures
Underlying profit/(loss) before taxation 529 118 69 44 365 100 120 (131) 71 421 1,706
Total assets employed 174,341 63,736 42,880 21,728 94,292 32,852 20,215 174,342 81,976 114,316 820,678
Of which: loans and advances 84,891 42,426 15,610 11,186 62,777 14,350 9,010 38,615 20,562 47,638 347,065
to customers(1)
Total liabilities employed 165,874 54,131 34,713 20,171 103,860 25,798 15,201 138,910 67,774 144,235 770,667
Of which: customer accounts(1) 138,604 41,163 26,554 18,724 78,810 19,311 12,128 99,974 34,022 57,121 526,411
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
2 Other includes notable items of Egypt revaluation and Ghana
hyperinflation
3 Underlying performance by key geography now include "Other", as a
consolidation of all the other geographies to reflect the RNS Presentation of
Financial Information we issued on 2 April 2024
Page 19
Supplementary financial information continued
Q4'23
Hong Kong Korea China Taiwan Singapore India UAE UK US Other(2) Group
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
Operating income 1,008 217 275 125 557 269 182 (103) 206 1,288 4,024
Operating expenses (489) (192) (234) (84) (312) (203) (93) (218) (149) (888) (2,862)
Operating profit/(loss) before impairment losses and taxation 519 25 41 41 245 66 89 (321) 57 400 1,162
Credit impairment (60) (3) (33) (9) (26) (18) 3 7 2 75 (62)
Other impairment (16) 1 (4) (5) (11) (10) (5) (15) (9) 33 (41)
Profit from associates and - - (1) - - - - - - (2) (3)
joint ventures
Underlying profit/(loss) before taxation 443 23 3 27 208 38 87 (329) 50 506 1,056
Total assets employed 190,484 56,638 41,508 21,638 102,724 33,781 20,376 149,982 88,113 117,600 822,844
Of which: loans and advances 87,590 33,443 15,882 11,634 62,030 13,832 8,495 31,067 27,434 54,079 345,486
to customers(1)
Total liabilities employed 183,112 46,666 38,252 20,365 109,825 26,532 17,214 92,168 72,583 165,774 772,491
Of which: customer accounts(1) 155,446 37,032 31,211 18,621 86,282 18,709 13,924 72,610 40,846 59,941 534,622
1 Loans and advances to customers includes FVTPL and customer
accounts includes FVTPL and repurchase agreements
2 Underlying performance by key geography now include "Other", as a
consolidation of all the other geographies to reflect the RNS Presentation of
Financial Information we issued on 2 April 2024
Page 20
Supplementary financial information continued
Quarterly underlying operating income by product
Q1'24 Q4'23(1) Q3'23(1) Q2'23(1) Q1'23(1) Q4'22(1) Q3'22(1) Q2'22(1)
$million
$million
$million
$million
$million
$million
$million
$million
Transaction Services(1) 1,615 1,659 1,667 1,620 1,572 1,416 1,221 964
Payments and Liquidity 1,161 1,207 1,196 1,148 1,094 962 758 515
Securities & Prime Services 141 140 138 131 141 126 120 104
Trade & Working Capital 313 312 333 341 337 328 343 345
Banking(1) 472 400 447 447 411 400 459 429
Lending & Financial Solutions 414 358 393 396 353 366 410 380
Capital Market & Advisory 58 42 54 51 58 34 49 49
Markets(1) 1,041 534 716 877 922 662 907 801
Macro Trading 884 463 595 776 786 536 725 745
Credit Trading 167 92 122 116 121 123 163 79
Valuation & Other Adj (10) (21) (1) (15) 15 3 19 (23)
Wealth Solutions(1) 616 412 526 495 511 358 454 456
CCPL & Other Unsecured Lending 287 288 297 286 290 294 298 310
Deposits(1) 908 933 953 881 803 833 640 364
Mortgages & Other Secured Lending(1) 103 57 69 113 161 55 191 291
Treasury 43 (235) (274) (160) (233) (173) (5) 201
Other 67 (24) 2 (4) (41) (80) (27) (33)
Total underlying operating income 5,152 4,024 4,403 4,555 4,396 3,765 4,138 3,783
1 Products are now presented to reflect the RNS on Presentation of
Financial Information issued on 2 April 2024. Prior periods have been restated
and there is no change in total income
Page 21
Supplementary financial information continued
Earnings per ordinary share
Q1'24 Q1'23 Change Q4'23 Change
$million
$million
%
$million
%
Profit for the period attributable to equity holders 1,395 1,344 4 938 49
Non-controlling interest 8 (3) nm(4) (2) nm(4)
Dividend payable on preference shares and AT1 classified (180) (178) (1) (29) nm(4)
as equity
Profit for the period attributable to ordinary shareholders 1,223 1,163 5 907 35
Items normalised:
Restructuring 55 (48) nm(4) 63 (13)
Goodwill and other impairment(1) - - nm(4) 153(1) nm(4)
DVA 48 (54) nm(4) (35) nm(4)
Net losses / (gains) on sale of businesses 12 - nm(4) (262) nm(4)
Other items(3) 100 - nm(4) - nm(4)
Tax on normalised items (45) 15 nm(4) (17) (165)
Underlying profit 1,393 1,076 29 809 72
Basic - Weighted average number of shares (millions) 2,632 2,860 (8) 2,664 (1)
Diluted - Weighted average number of shares (millions) 2,692 2,921 (8) 2,723 (1)
Basic earnings per ordinary share (cents)² 46.5 40.7 5.8 34.0 12.5
Diluted earnings per ordinary share (cents)² 45.4 39.8 5.6 33.3 12.1
Underlying basic earnings per ordinary share (cents)² 52.9 37.6 15.3 30.4 22.5
Underlying diluted earnings per ordinary share (cents)² 51.7 36.8 14.9 29.7 22.0
1 Goodwill and Other impairment include $153 million impairment charge
relating to the Group's investment in its associate China Bohai Bank (Bohai)
2 Change is the percentage points difference between the two periods
rather than the percentage change
3 Other items include $100m provision relating to Korea ELS
4 Not meaningful
Page 22
Supplementary financial information continued
Return on Tangible Equity
Q1'24 Q1'23 Change Q4'23 Change
$million
$million
%
$million
%
Average parent company Shareholders' Equity 44,188 43,643 1 43,456 2
Less Average preference share capital and share premium (1,494) (1,494) - (1,494) -
Less Average intangible assets (6,184) (5,880) (5) (6,106) (1)
Average Ordinary Shareholders' Tangible Equity 36,510 36,269 1 35,856 2
Profit for the period attributable to equity holders 1,395 1,344 4 938 49
Non-controlling interests 8 (3) nm(3) (2) nm(3)
Dividend payable on preference shares and AT1 classified (180) (178) (1) (29) nm(3)
as equity
Profit for the period attributable to ordinary shareholders 1,223 1,163 5 907 35
Items normalised:
Restructuring 55 (48) nm(3) 63 (13)
Goodwill and Other impairment - - nm(3) 153(1) nm(3)
Net losses/(gains) on sale of businesses 12 - nm(3) (262) nm(3)
Ventures FVOCI unrealised (gains)/losses net of tax (13) (9) (44) 37 nm(3)
DVA 48 (54) nm(3) (35) nm(3)
Other items(2) 100 - nm(3) - nm(3)
Tax on normalised items (45) 15 nm(3) (17) (165)
Underlying profit for the period attributable to 1,380 1,067 29 846 63
ordinary shareholders
Underlying Return on Tangible Equity 15.2% 11.9% 330bps 9.4% 580bps
Reported Return on Tangible Equity 13.5% 13.0% 50bps 10.0% 350bps
1 Goodwill and Other impairment include $153 million impairment
charge relating to the Group's investment in its associate China Bohai Bank
(Bohai)
2 Other items include $100m provision relating to Korea ELS
3 Not meaningful
Net Tangible Asset Value per Share
31.03.24 31.03.23 Change 31.12.23 Change
$million
$million
%
$million
%
Parent company shareholders' equity 43,929 44,125 - 44,445 (1)
Less Preference share premium (1,494) (1,494) - (1,494) -
Less Intangible assets (6,153) (5,891) (4) (6,214) 1
Net shareholders tangible equity 36,282 36,740 (1) 36,737 (1)
Ordinary shares in issue, excluding own shares (millions) 2,610 2,833 (8) 2,637 (1)
Net Tangible Asset Value per share (cents)(1) 1,390 1,297 93 1,393 (3)
1 Change is cents difference between the two periods rather than the
percentage change
Page 23
Underlying versus reported results reconciliations
Reconciliations between underlying and reported results are set out in the tables below:
Operating income by client segment
Q1'24
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Underlying operating income 3,115 1,917 32 88 5,152
Restructuring 21 11 - 6 38
DVA (48) - - - (48)
Other items - - - (12) (12)
Reported operating income 3,088 1,928 32 82 5,130
Q1'23
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Underlying operating income 2,892 1,772 17 (285) 4,396
Restructuring 95 13 - 2 110
DVA 54 - - - 54
Other items - - - - -
Reported operating income 3,041 1,785 17 (283) 4,560
Net interest income and non NII
Q1'24 Q1'23
Underlying Restructuring Adjustment for trading book funding cost and others Reported Underlying Restructuring Adjustment for trading book funding cost and others Reported
$million
$million
$million
$million
$million
$million
$million
$million
Net interest income(1) 2,419 10 (857) 1,572 2,341 (1) (334) 2,006
Non NII(1) 2,733 (32) 857 3,558 2,055 165 334 2,554
Total income 5,152 (22) - 5,130 4,396 164 - 4,560
1 To be consistent with how we the compute Net Interest Margin, we
have changed our definition of Underlying Net Interest Income (NII) and
Underlying non NII. The adjustments made to NIM, including Interest expense
relating to funding our trading book, will now be shown against Underlying non
NII rather than Underlying NII. There is no impact on total income
Page 24
Underlying versus reported results reconciliations continued
Profit before taxation (PBT)
Q1'24
Underlying Restructuring Net loss on businesses disposed/ Other items DVA Reported
$million
$million
held for sale
$million
$million
$million
$million
Operating income 5,152 38 (12) - (48) 5,130
Operating expenses (2,786) (111) - (100) - (2,997)
Operating profit/(loss) before impairment losses and taxation 2,366 (73) (12) (100) (48) 2,133
Credit impairment (176) 11 - - - (165)
Other impairment (60) - - - - (60)
Profit from associates and joint ventures (1) 7 - - - 6
Profit/(loss) before taxation 2,129 (55) (12) (100) (48) 1,914
Q1'23
Underlying Restructuring Net gain on businesses disposed/ Other items DVA Reported
$million
$million
held for sale
$million
$million
$million
$million
Operating income 4,396 110 - - 54 4,560
Operating expenses (2,675) (75) - - - (2,750)
Operating profit/(loss) before impairment losses and taxation 1,721 35 - - 54 1,810
Credit impairment (26) 6 - - - (20)
Other impairment - - - - - -
Profit from associates and joint ventures 11 7 - - - 18
Profit/(loss) before taxation 1,706 48 - - 54 1,808
Profit before taxation (PBT) by client segment
Q1'24
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Operating income 3,115 1,917 32 88 5,152
External 2,545 888 32 1,687 5,152
Inter-segment 570 1,029 - (1,599) -
Operating expenses (1,423) (1,047) (113) (203) (2,786)
Operating profit/(loss) before impairment losses and taxation 1,692 870 (81) (115) 2,366
Credit impairment - (136) (28) (12) (176)
Other impairment (53) (5) - (2) (60)
Profit from associates and joint ventures - - (3) 2 (1)
Underlying profit/(loss) before taxation 1,639 729 (112) (127) 2,129
Restructuring (11) (19) - (25) (55)
DVA (48) - - - (48)
Other items - (100) - (12) (112)
Reported profit/(loss) before taxation 1,580 610 (112) (164) 1,914
Page 25
Underlying versus reported results reconciliations continued
Q1'23
Corporate & Investment Banking Wealth & Ventures Central & Total
$million
Retail Banking
$million
other items
$million
$million
$million
Operating income 2,892 1,772 17 (285) 4,396
External 2,313 1,126 17 940 4,396
Inter-segment 579 646 - (1,225) -
Operating expenses (1,415) (1,033) (102) (125) (2,675)
Operating profit/(loss) before impairment losses and taxation 1,477 739 (85) (410) 1,721
Credit impairment 8 (62) (10) 38 (26)
Profit from associates and joint ventures - - (8) 19 11
Underlying profit/(loss) before taxation 1,485 677 (103) (353) 1,706
Restructuring 39 (2) - 11 48
DVA 54 - - - 54
Reported profit/(loss) before taxation 1,578 675 (103) (342) 1,808
Return on tangible equity (RoTE)
Q1'24
Corporate & Investment Banking Wealth & Ventures Central & Total
%
Retail Banking
%
other items
%
%
%
Underlying RoTE 23.0 28.8 nm² (16.7) 15.2
Restructuring
Of which: Income 0.4 0.6 - 0.3 0.4
Of which: Expenses (0.8) (1.6) - (2.1) (1.2)
Of which: Credit impairment 0.2 - - - 0.1
Of which: Other impairment - - - - -
Of which: Profit from associates and joint ventures - - - 0.4 0.1
Net loss on businesses disposed/held for sale(1) - - - (0.7) (0.1)
Ventures FVOCI Unrealised gains / (losses) net of taxes - - - - 0.1
DVA (0.9) - - - (0.5)
Other items - (5.3) - - (1.1)
Tax on normalised items 0.3 1.6 - - 0.5
Reported RoTE 22.2 24.1 nm² (18.8) 13.5
Q1'23
Corporate & Investment Banking Wealth & Ventures Central & Total
%
Retail Banking
%
other items
%
%
%
Underlying RoTE 21.2 28.0 nm² (25.7) 11.9
Restructuring
Of which: Income 1.8 0.7 - 0.1 1.4
Of which: Expenses (1.1) (0.8) - (0.2) (0.8)
Of which: Credit impairment - - - 0.2 0.1
Of which: Other impairment (0.1) - - 0.1 -
Of which: Profit from associates and joint ventures - - - 0.4 0.1
Ventures FVOCI Unrealised gains / (losses) net of taxes - - - - (0.1)
DVA 1.0 - - - 0.6
Tax on normalised items (0.3) - nm² 0.4 (0.2)
Reported RoTE 22.5 27.9 nm² (24.7) 13.0
1 Net loss on businesses includes the loss of $12 million in relation
to a sale of a portfolio of Aviation loans
2 Not meaningful
3 Segmental RoTE is the ratio of the current year's underlying profit
to the average tangible equity. Average Tangible Equity has been derived based
on average RWA
Page 26
Underlying versus reported results reconciliations continued
Earnings per ordinary share (EPS)
Q1'24
Underlying Restructuring DVA Net loss Other items(1) Tax on normalised items Reported
$ million
$ million
$ million
on sale of business
$ million
$ million
$ million
$ million
Profit for the year attributable to ordinary shareholders 1,393 (55) (48) (12) (100) 45 1,223
Basic - Weighted average number of shares (millions) 2,632 2,632
Basic earnings per ordinary share (cents) 52.9 46.5
Q1'23
Underlying Restructuring DVA Net gain Other items Tax on normalised items Reported
$ million
$ million
$ million
on sale of business
$ million
$ million
$ million
$ million
Profit for the year attributable to ordinary shareholders 1,076 48 54 - - (15) 1,163
Basic - Weighted average number of shares (millions) 2,860 2,860
Basic earnings per ordinary share (cents) 37.6 40.7
1 Other items include $100m provision relating to Korea ELS
Page 27
Risk review
Credit quality by client segment
Amortised cost 31.03.24
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Customer Total
$million
$million
$million
$million
$million
Stage 1 39,437 125,119 119,592 1,014 26,408 272,133 172,631 74,702
- Strong 30,079 85,999 114,257 1,000 25,964 227,220 157,541 51,800
- Satisfactory 9,358 39,120 5,335 14 444 44,913 15,090 22,902
Stage 2 195 7,402 2,067 51 - 9,520 4,970 1,916
- Strong 59 1,151 1,533 33 - 2,717 1,122 400
- Satisfactory 104 5,274 170 6 - 5,450 3,333 1,307
- Higher risk 32 977 364 12 - 1,353 515 209
Of which (stage 2):
- Less than 30 days past due 1 51 170 6 - 227 - -
- More than 30 days past due 7 15 364 12 - 391 - -
Stage 3, credit-impaired financial assets 84 5,396 1,532 10 52 6,990 5 683
Gross balance¹ 39,716 137,917 123,191 1,075 26,460 288,643 177,606 77,301
Stage 1 (5) (140) (320) (18) - (478) (52) (14)
- Strong (3) (73) (250) (17) - (340) (35) (5)
- Satisfactory (2) (67) (70) (1) - (138) (17) (9)
Stage 2 (8) (204) (132) (23) - (359) (44) (9)
- Strong (1) (5) (50) (16) - (71) (5) -
- Satisfactory (1) (142) (24) (3) - (169) (24) (3)
- Higher risk (6) (57) (58) (4) - (119) (15) (6)
Of which (stage 2):
- Less than 30 days past due - (2) (24) (3) - (29) - -
- More than 30 days past due - - (58) (4) - (62) - -
Stage 3, credit-impaired financial assets (5) (3,631) (735) (10) (27) (4,403) - (126)
Total credit impairment (18) (3,975) (1,187) (51) (27) (5,240) (96) (149)
Net carrying value 39,698 133,942 122,004 1,024 26,433 283,403
Stage 1 0.0% 0.1% 0.3% 1.8% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.1% 0.2% 1.7% 0.0% 0.1% 0.0% 0.0%
- Satisfactory 0.0% 0.2% 1.3% 7.1% 0.0% 0.3% 0.1% 0.0%
Stage 2 4.1% 2.8% 6.4% 45.1% 0.0% 3.8% 0.9% 0.5%
- Strong 1.7% 0.4% 3.3% 48.5% 0.0% 2.6% 0.5% 0.0%
- Satisfactory 1.0% 2.7% 14.1% 50.0% 0.0% 3.1% 0.7% 0.2%
- Higher risk 18.8% 5.8% 15.9% 33.3% 0.0% 8.8% 2.9% 2.9%
Of which (stage 2):
- Less than 30 days past due 0.0% 3.9% 14.1% 50.0% 0.0% 12.8% 0.0% 0.0%
- More than 30 days past due 0.0% 0.0% 15.9% 33.3% 0.0% 15.9% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 6.0% 67.3% 48.0% 100.0% 51.9% 63.0% 0.0% 18.4%
Cover ratio 0.0% 2.9% 1.0% 4.7% 0.1% 1.8% 0.1% 0.2%
Fair value through profit or loss
Performing 36,402 55,472 11 - 2 55,485 - -
- Strong 31,475 37,934 11 - 2 37,947 - -
- Satisfactory 4,927 17,490 - - - 17,490 - -
- Higher risk - 48 - - - 48 - -
Defaulted (CG13-14) - 33 - - - 33 - -
Gross balance (FVTPL)(2) 36,402 55,505 11 - 2 55,518 - -
Net carrying value (incl FVTPL) 76,100 189,447 122,015 1,024 26,435 338,921 - -
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $11,290 million under Customers and of $2,542
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $47,568 million under Customers and of $33,441
million under Banks, held at fair value through profit or loss
Page 28
Risk review continued
Amortised cost 31.12.23
Banks Customers Undrawn commitments Financial Guarantees
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Customer Total
$million
$million
$million
$million
$million
Stage 1 44,384 120,886 123,486 1,015 28,305 273,692 176,654 70,832
- Strong 35,284 84,248 118,193 1,000 27,967 231,408 162,643 47,885
- Satisfactory 9,100 36,638 5,293 15 338 42,284 14,011 22,947
Stage 2 540 7,902 2,304 54 965 11,225 5,733 2,910
- Strong 55 1,145 1,761 34 - 2,940 1,090 830
- Satisfactory 212 5,840 206 7 - 6,053 4,169 1,823
- Higher risk 273 917 337 13 965 2,232 474 257
Of which (stage 2):
- Less than 30 days past due - 78 206 7 - 291 - -
- More than 30 days past due - 10 337 13 - 360 - -
Stage 3, credit-impaired financial assets 77 5,508 1,484 12 224 7,228 3 672
Gross balance(1) 45,001 134,296 127,274 1,081 29,494 292,145 182,390 74,414
Stage 1 (8) (101) (314) (15) - (430) (52) (10)
- Strong (3) (34) (234) (14) - (282) (31) (2)
- Satisfactory (5) (67) (80) (1) - (148) (21) (8)
Stage 2 (10) (257) (141) (21) (1) (420) (39) (14)
- Strong (1) (18) (65) (14) - (97) (5) -
- Satisfactory (2) (179) (22) (3) - (204) (23) (7)
- Higher risk (7) (60) (54) (4) (1) (119) (11) (7)
Of which (stage 2):
- Less than 30 days past due - (2) (22) (3) - (27) - -
- More than 30 days past due - (1) (54) (4) - (59) - -
Stage 3, credit-impaired financial assets (6) (3,533) (760) (12) (15) (4,320) - (112)
Total credit impairment (24) (3,891) (1,215) (48) (16) (5,170) (91) (136)
Net carrying value 44,977 130,405 126,059 1,033 29,478 286,975 - -
Stage 1 0.0% 0.1% 0.3% 1.5% 0.0% 0.2% 0.0% 0.0%
- Strong 0.0% 0.0% 0.2% 1.4% 0.0% 0.1% 0.0% 0.0%
- Satisfactory 0.1% 0.2% 1.5% 6.7% 0.0% 0.4% 0.1% 0.0%
Stage 2 1.9% 3.3% 6.1% 38.9% 0.1% 3.7% 0.7% 0.5%
- Strong 1.8% 1.6% 3.7% 41.2% 0.0% 3.3% 0.5% 0.0%
- Satisfactory 0.9% 3.1% 10.7% 42.9% 0.0% 3.4% 0.6% 0.4%
- Higher risk 2.6% 6.5% 16.0% 30.8% 0.1% 5.3% 2.3% 2.7%
Of which (stage 2):
- Less than 30 days past due 0.0% 2.6% 10.7% 42.9% 0.0% 9.3% 0.0% 0.0%
- More than 30 days past due 0.0% 10.0% 16.0% 30.8% 0.0% 16.4% 0.0% 0.0%
Stage 3, credit-impaired financial assets (S3) 7.8% 64.1% 51.2% 100.0% 6.7% 59.8% 0.0% 16.7%
Cover ratio 0.1% 2.9% 1.0% 4.4% 0.1% 1.8% 0.0% 0.2%
Fair value through profit or loss
Performing 32,813 58,465 13 - - 58,478 - -
- Strong 28,402 38,014 13 - 38,027 - -
- Satisfactory 4,411 20,388 - - - 20,388 - -
- Higher risk - 63 - - - 63 - -
Defaulted (CG13-14) - 33 - - - 33 - -
Gross balance (FVTPL)(2) 32,813 58,498 13 - - 58,511 - -
Net carrying value (incl FVTPL) 77,790 188,903 126,072 1,033 29,478 345,486 - -
1 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $13,996 million under Customers and of $1,738
million under Banks, held at amortised cost
2 Loans and advances includes reverse repurchase agreements and other
similar secured lending of $51,229 million under Customers and of $30,548
million under Banks, held at fair value through profit or loss
Page 29
Risk review continued
Credit impairment charge
3 months ended 31.03.24 3 months ended 31.03.23
Stage 1 & 2 Stage 3 Total Stage 1 & 2 Stage 3 Total
$million
$million
$million
$million
$million
$million
Ongoing business portfolio
Corporate & Investment Banking (10) 10 - 24 (32) (8)
Wealth & Retail Banking 63 73 136 13 49 62
Ventures 9 19 28 6 4 10
Central & Other items (1) 13 12 (37) (1) (38)
Credit impairment charge / (release) 61 115 176 6 20 26
Others 1 (12) (11) 1 (7) (6)
Credit impairment charge / (release) 1 (12) (11) 1 (7) (6)
Total credit impairment charge / (release) 62 103 165 7 13 20
Vulnerable, cyclical and high carbon sectors
Maximum Exposure
Amortised Cost 31.03.24
Maximum Collateral Net On Balance Sheet Exposure Undrawn Commitments (net of credit impairment) Financial Guarantees (net of credit impairment) Net Off Balance Sheet Exposure Total On & Off Balance Sheet Net Exposure
On Balance Sheet Exposure (net of credit impairment)
$million
$million
$million
$million
$million
$million
$million
Industry:
Automotive manufacturers(1) 3,682 24 3,658 3,413 394 3,807 7,465
Aviation(1,2) 1,768 899 869 1,759 717 2,476 3,345
Of which : High Carbon Sector 1,446 860 586 927 569 1,496 2,082
Commodity Traders(2) 8,846 355 8,491 2,445 6,288 8,733 17,224
Metals & Mining(1,2) 5,230 368 4,862 6,541 2,208 8,749 13,611
Of which : Steel(1) 1,817 200 1,617 1,143 366 1,509 3,126
Of which : Coal Mining(1) 20 8 12 50 101 151 163
Of which: Aluminium(1) 339 12 327 444 97 541 868
Shipping(1) 6,564 3,974 2,590 2,409 257 2,666 5,256
Construction(2) 3,095 495 2,600 2,710 5,866 8,576 11,176
Of which: Cement(1) 789 52 737 665 298 963 1,700
Commercial Real Estate(2) 14,420 5,734 8,686 4,741 743 5,484 14,170
Of which : High Carbon Sector 7,629 2,635 4,994 1,937 439 2,376 7,370
Hotels & Tourism(2) 1,960 610 1,350 1,308 313 1,621 2,971
Oil & Gas(1,2) 7,561 1,040 6,521 8,862 6,755 15,617 22,138
Power(1) 5,209 1,029 4,180 4,015 795 4,810 8,990
Total(3) 58,335 14,528 43,807 38,203 24,336 62,539 106,346
Of which: Vulnerable and cyclical sectors 41,333 9,427 31,906 25,749 22,164 47,913 79,819
Of which: High carbon sectors 36,594 9,908 26,686 26,482 10,797 37,279 63,965
Total Corporate & Investment Banking(4) 133,942 30,584 103,358 109,772 66,254 176,026 279,384
Total Group(4) 323,101 121,034 202,067 177,510 77,152 254,662 456,729
1 High carbon sectors
2 Vulnerable and cyclical sectors
3 Maximum On Balance sheet exposure include FVTPL portion of $1,340
million, of which Vulnerable sector is $1,290 million and High Carbon sector
is $398 million
4 Exclude On Balance sheet FVTPL amount of $55,505 million for
Corporate & Investment Banking and $91,920 million for Group
Page 30
Risk review continued
Amortised Cost 31.12.23
Maximum Collateral Net On Balance Sheet Exposure Undrawn Commitments (net of credit impairment) Financial Guarantees (net of credit impairment) Net Off Balance Sheet Exposure Total On & Off Balance Sheet Net Exposure
On Balance Sheet Exposure
Million
Million
Million
Million
Million
Million
(net of credit impairment)
Million
Industry:
Automotive manufacturers(1) 3,564 65 3,499 3,791 538 4,329 7,828
Aviation(1,2) 1,775 974 801 1,794 668 2,462 3,263
Of which : High Carbon Sector 1,330 974 356 944 615 1,559 1,915
Commodity Traders(2) 7,406 303 7,103 2,591 6,281 8,872 15,975
Metals & Mining(1,2) 4,589 307 4,282 3,373 1,218 4,591 8,873
Of which : Steel(1) 1,596 193 1,403 601 358 959 2,362
Of which : Coal Mining(1) 29 9 20 51 99 150 170
Of which: Aluminium(1) 526 9 517 338 188 526 1,043
Shipping(1) 5,964 3,557 2,407 2,261 291 2,552 4,959
Construction(2) 2,853 448 2,405 2,753 5,927 8,680 11,085
Of which: Cement(1,4) 671 47 624 769 259 1,028 1,652
Commercial Real Estate(2) 14,533 6,363 8,170 4,658 311 4,969 13,139
Of which : High Carbon Sector 7,498 3,383 4,115 1,587 112 1,699 5,814
Hotels & Tourism(2) 1,680 715 965 1,339 227 1,566 2,531
Oil & Gas(1,2) 6,278 894 5,384 7,845 6,944 14,789 20,173
Power(1) 5,411 1,231 4,180 3,982 732 4,714 8,894
Total(3) 54,053 14,857 39,196 34,387 23,137 57,524 96,720
Of which: Vulnerable and cyclical sectors(4) 38,661 10,051 28,610 24,842 21,511 46,353 74,963
Of which: High carbon sectors(4) 34,984 10,458 24,526 24,552 10,709 35,261 59,787
Total Corporate & Investment Banking(5) 130,405 32,744 97,661 104,437 63,183 167,620 265,281
Total Group(5) 331,952 125,760 206,192 182,299 74,278 256,577 462,769
1 High carbon sectors
2 Vulnerable and cyclical sectors
3 Maximum On Balance sheet exposure include FVTPL portion of $977
million, of which Vulnerable sector is $602 million and High Carbon sector is
$472 million
4 Included to provide consistency with climate reporting
5 Exclude On Balance sheet FVTPL amount of $58,498 million for Corporate
& Investment Banking and $91,324 million for Group
Page 31
Risk review continued
Loans and advances by stage
Amortised Cost 31.03.24
Stage 1 Stage 2 Stage 3 Tot
al
Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
$million
$million
$million
Industry:
Aviation 1,617 - 1,617 53 (1) 52 69 (13) 56 1,739 (14) 1,725
Commodity Traders 8,205 (2) 8,203 78 (1) 77 533 (496) 37 8,816 (499) 8,317
Metals & Mining 3,239 (2) 3,237 113 (5) 108 122 (72) 50 3,474 (79) 3,395
Construction 2,674 (2) 2,672 292 (2) 290 375 (336) 39 3,341 (340) 3,001
Commercial Real Estate 12,118 (64) 12,054 1,659 (80) 1,579 1,740 (1,252) 488 15,517 (1,396) 14,121
Hotels & Tourism 1,653 (2) 1,651 204 (1) 203 118 (49) 69 1,975 (52) 1,923
Oil & Gas 6,628 (5) 6,623 570 (12) 558 532 (152) 380 7,730 (169) 7,561
Total 36,134 (77) 36,057 2,969 (102) 2,867 3,489 (2,370) 1,119 42,592 (2,549) 40,043
Total Corporate & Investment Banking 125,119 (140) 124,979 7,402 (204) 7,198 5,396 (3,631) 1,765 137,917 (3,975) 133,942
Total Group 311,570 (483) 311,087 9,715 (367) 9,348 7,074 (4,408) 2,666 328,359 (5,258) 323,101
Amortised Cost 31.12.23
Stage 1 Stage 2 Stage 3 Tot
al
Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount Gross Balance Total Net Carrying Amount
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
Credit Impairment
$million
$million
$million
$million
$million
Industry:
Aviation 1,619 - 1,619 55 (1) 54 74 59 1,748 (16) 1,732
Commodity Traders 6,912 (2) 6,910 129 (1) 128 555 (504) 51 7,596 (507) 7,089
Metals & Mining 3,934 (1) 3,933 140 (8) 132 154 (88) 66 4,228 (97) 4,131
Construction 2,230 (2) 2,228 502 (8) 494 358 (326) 32 3,090 (336) 2,754
Commercial Real Estate 12,261 (30) 12,231 1,848 (129) 1,719 1,712 (1,191) 521 15,821 (1,350) 14,471
Hotels & Tourism 1,468 (2) 1,466 61 - 61 126 (25) 101 1,655 (27) 1,628
Oil & Gas 5,234 (4) 5,230 615 (15) 600 571 (147) 424 6,420 (166) 6,254
Total 33,658 (41) 33,617 3,350 (162) 3,188 3,550 (2,296) 1,254 40,558 (2,499) 38,059
Total Corporate & Investment Banking 120,886 (101) 120,785 7,902 (257) 7,645 5,508 (3,533) 1,975 134,296 (3,891) 130,405
Total Group 318,076 (438) 317,638 11,765 (430) 11,335 7,305 (4,326) 2,979 337,146 (5,194) 331,952
Page 32
Capital review
Capital ratios
31.03.24 31.12.23 Change(2) 31.03.23 Change(2)
CET1 13.6% 14.1% (0.5) 13.7% (0.1)
Tier 1 capital 16.2% 16.3% (0.1) 15.9% 0.3
Total capital 20.8% 21.2% (0.4) 20.9% (0.1)
Capital base(1)
31.03.24 31.12.23 Change(3) 31.03.23 Change(3)
$million
$million
%
$million
%
CET1 instruments and reserves
Capital instruments and the related share premium accounts 5,295 5,321 - 5,407 (2)
Of which: share premium accounts 3,989 3,989 - 3,989 -
Retained earnings 27,502 24,930 10 26,936 2
Accumulated other comprehensive income (and other reserves) 8,247 9,171 (10) 8,882 (7)
Non-controlling interests (amount allowed in consolidated CET1) 256 217 18 244 5
Independently reviewed interim and year-end profits 1,407 3,542 (60) 1,328 6
Foreseeable dividends (830) (768) 8 (659) 26
CET1 capital before regulatory adjustments 41,877 42,413 (1) 42,138 (1)
CET1 regulatory adjustments
Additional value adjustments (prudential valuation adjustments) (726) (730) (1) (801) (9)
Intangible assets (net of related tax liability) (6,066) (6,128) (1) (5,859) 4
Deferred tax assets that rely on future profitability (excludes those arising (51) (41) 24 (89) (43)
from temporary differences)
Fair value reserves related to net losses on cash flow hedges 4 (91) nm(4) 301 (99)
Deduction of amounts resulting from the calculation of excess expected loss (784) (754) 4 (739) 6
Net gains on liabilities at fair value resulting from changes in own credit 231 (100) nm(4) (186) nm(4)
risk
Defined-benefit pension fund assets (103) (95) 8 (144) (28)
Fair value gains arising from the institution's own credit risk related to (70) (116) (40) (146) (52)
derivative liabilities
Exposure amounts which could qualify for risk weighting of 1,250% (33) (44) (25) (50) (34)
Other regulatory adjustments to CET1 capital - - - (23) nm(4)
Total regulatory adjustments to CET1 (7,598) (8,099) (6) (7,736) (2)
CET1 capital 34,279 34,314 - 34,402 -
Additional Tier 1 capital (AT1) instruments 6,506 5,512 18 5,512 18
AT1 regulatory adjustments (20) (20) - (20) -
Tier 1 capital 40,765 39,806 2 39,894 2
Tier 2 capital instruments 11,803 11,965 (1) 12,454 (5)
Tier 2 regulatory adjustments (30) (30) - (30) -
Tier 2 capital 11,773 11,935 (1) 12,424 (5)
Total capital 52,538 51,741 2 52,318 -
Total risk-weighted assets (unaudited) 252,116 244,151 3 250,893 -
1 Capital base is prepared on the regulatory scope of consolidation
2 Change is the percentage point difference between two periods,
rather than percentage change
3 Variance is increase/(decrease) comparing current reporting period
to prior periods
4 Not meaningful
Page 33
Capital review continued
Movement in total capital
3 months ended 31.03.24 12 months ended 31.12.23
$million
$million
CET1 at 1 January 34,314 34,157
Ordinary shares issued in the period and share premium - -
Share buy-back (1,000) (2,000)
Profit for the period 1,407 3,542
Foreseeable dividends deducted from CET1 (830) (768)
Difference between dividends paid and foreseeable dividends 588 (372)
Movement in goodwill and other intangible assets 63 (326)
Foreign currency translation differences (465) (477)
Non-controlling interests 39 28
Movement in eligible other comprehensive income 151 464
Deferred tax assets that rely on future profitability (10) 35
Decrease/(increase) in excess expected loss (30) (70)
Additional value adjustments (prudential valuation adjustment) 4 124
IFRS 9 transitional impact on regulatory reserves including day one - (106)
Exposure amounts which could qualify for risk weighting 11 59
Fair value gains arising from the institution's own Credit Risk related to 46 (26)
derivative liabilities
Others (9) 50
CET1 at 31 March/31 December 34,279 34,314
AT1 at 1 January 5,492 6,484
Net issuances (redemptions) 993 (1,000)
Foreign currency translation difference - 8
Excess on AT1 grandfathered limit (ineligible) 1 -
AT1 at 31 March/31 December 6,486 5,492
Tier 2 capital at 1 January 11,935 12,510
Regulatory amortisation 907 1,416
Net issuances (redemptions) (1,000) (2,160)
Foreign currency translation difference (71) 146
Tier 2 ineligible minority interest - 19
Other 2 4
Tier 2 capital at 31 March/31 December 11,773 11,935
Total capital at 31 March/31 December 52,538 51,741
Page 34
Capital review continued
Risk-weighted assets by business
31.03.24
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 104,868 20,312 25,420 150,600
Wealth & Retail Banking 43,183 9,523 - 52,706
Ventures 1,939 142 3 2,084
Central & other items 43,019 (172) 3,879 46,726
Total risk-weighted assets 193,009 29,805 29,302 252,116
31.12.23
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 102,675 18,083 21,221 141,979
Wealth & Retail Banking 42,559 8,783 - 51,342
Ventures 1,885 35 3 1,923
Central & other items 44,304 960 3,643 48,907
Total risk-weighted assets 191,423 27,861 24,867 244,151
31.03.23
Credit risk Operational risk Market risk Total risk
$million
$million
$million
$million
Corporate & Investment Banking 112,534 18,083 17,933 148,550
Wealth & Retail Banking 41,838 8,783 - 50,621
Ventures 1,591 35 1 1,627
Central & other items 44,669 960 4,466 50,095
Total risk-weighted assets 200,632 27,861 22,400 250,893
Movement in risk-weighted assets
Credit risk Operational risk Market risk Total risk
$million
$million
$million
Corporate & Investment Banking Wealth & Retail Banking Ventures Central & other items Total
$million
$million
$million
$million
$million
At 31 December 2022 110,103 42,091 1,350 43,311 196,855 27,177 20,679 244,711
At 1 January 2023 110,103 42,091 1,350 43,311 196,855 27,177 20,679 244,711
Asset growth & mix (4,424) 728 535 1,183 (1,978) - - (1,978)
Asset quality (391) 390 - 2,684 2,683 - - 2,683
Risk-weighted assets efficiencies - - - (688) (688) - - (688)
Model updates (597) (151) - (151) (899) - 500 (399)
Methodology and policy changes - (196) - - (196) - (800) (996)
Acquisitions and disposals (1,630) - - - (1,630) - - (1,630)
Foreign currency translation (386) (303) - (2,035) (2,724) - - (2,724)
Other, including non-credit risk movements - - - - - 684 4,488 5,172
At 31 December 2023 102,675 42,559 1,885 44,304 191,423 27,861 24,867 244,151
Asset growth & mix 2,984 358 54 (1,055) 2,341 - - 2,341
Asset quality (308) 154 - 334 180 - - 180
Risk-weighted assets efficiencies - - - - - - - -
Model updates 462 818 - - 1,280 - - 1,280
Methodology and policy changes - - - - - - (1,300) (1,300)
Acquisitions and disposals - - - - - - - -
Foreign currency translation (945) (706) - (564) (2,215) - - (2,215)
Other, including non-credit risk movements - - - - - 1,944 5,735 7,679
At 31 March 2024 104,868 43,183 1,939 43,019 193,009 29,805 29,302 252,116
Page 35
Capital review continued
Leverage Ratio
31.03.24 31.12.23 Change(3) 31.03.23 Change(3)
$million
$million
%
$million
%
Tier 1 capital 40,765 39,806 2 39,894 2
Derivative financial instruments 46,794 50,434 (7) 48,089 (3)
Derivative cash collateral 8,006 10,337 (23) 11,392 (30)
Securities financing transactions (SFTs) 94,841 97,581 (3) 85,412 11
Loans and advances and other assets 662,884 664,492 - 675,785 (2)
Total on-balance sheet assets 812,525 822,844 (1) 820,678 (1)
Regulatory consolidation adjustments(1) (80,878) (92,709) (13) (85,553) (5)
Derivatives adjustments
Derivatives netting (34,957) (39,031) (10) (35,561) (2)
Adjustments to cash collateral (6,685) (9,833) (32) (7,533) (11)
Net written credit protection 1,423 1,359 5 1,256 13
Potential future exposure on derivatives 43,745 42,184 4 39,409 11
Total derivatives adjustments 3,526 (5,321) nm(4) (2,429) nm(4)
Counterparty risk leverage exposure measure for SFTs 5,062 6,639 (24) 10,654 (52)
Off-balance sheet items 122,233 123,572 (1) 121,268 1
Regulatory deductions from Tier 1 capital (7,757) (7,883) (2) (7,404) 5
Total exposure measure excluding claims on central banks 854,711 847,142 1 857,214 -
Leverage ratio excluding claims on central banks (%)(2) 4.8% 4.7% 0.1 4.7% 0.1
Average leverage exposure measure excluding claims on 868,496 853,968 2 866,944 -
central banks
Average leverage ratio excluding claims on central banks (%)(2) 4.6% 4.6% - 4.6% -
Countercyclical leverage ratio buffer(2) 0.1% 0.1% - 0.1% -
G-SII additional leverage ratio buffer(2) 0.4% 0.4% - 0.4% -
1 Includes adjustment for qualifying central bank claims and unsettled
regular way trades
2 Change is the percentage point difference two periods, rather than
percentage change
3 Variance is increase/(decrease) comparing current reporting period
to prior periods
4 Not meaningful
Page 36
Financial statements
Condensed consolidated interim income statement
For the three months ended 31 March 2024
3 months ended 31.03.24 3 months ended 31.03.23
$million
$million
Interest income 7,137 6,284
Interest expense (5,565) (4,278)
Net interest income 1,572 2,006
Fees and commission income 1,180 1,038
Fees and commission expense (212) (198)
Net fee and commission income 968 840
Net trading income 2,489 1,649
Other operating income 101 65
Operating income 5,130 4,560
Staff costs (2,110) (1,960)
Premises costs (82) (101)
General administrative expenses (551) (390)
Depreciation and amortisation (254) (299)
Operating expenses (2,997) (2,750)
Operating profit before impairment losses and taxation 2,133 1,810
Credit impairment (165) (20)
Goodwill, property, plant and equipment and other impairment (60) -
Profit from associates and joint ventures 6 18
Profit before taxation 1,914 1,808
Taxation (519) (464)
Profit for the period 1,395 1,344
Profit attributable to:
Non-controlling interests (8) 3
Parent company shareholders 1,403 1,341
Profit for the period 1,395 1,344
cents cents
Earnings per share:
Basic earnings per ordinary share 46.5 40.7
Diluted earnings per ordinary share 45.4 39.8
Page 37
Financial statements continued
Condensed consolidated interim statement of comprehensive income
For the three months ended 31 March 2024
3 months ended 31.03.24 3 months ended 31.03.23
$million
$million
Profit for the period 1,395 1,344
Other comprehensive (loss)/income
Items that will not be reclassified to income statement: (268) 264
Own credit (losses)/gains on financial liabilities designated at fair value (378) 293
through profit or loss
Equity instruments at fair value through other comprehensive income (20) (22)
Actuarial gains on retirement benefit obligations 23 36
Taxation relating to components of other comprehensive income 107(1) (43)
Items that may be reclassified subsequently to income statement: (504) 445
Exchange differences on translation of foreign operations:
Net losses taken to equity (706) (79)
Net gains on net investment hedges 274 79
Share of other comprehensive income/(loss) from associates and joint ventures 5 (9)
Debt instruments at fair value through other comprehensive income:
Net valuation (losses)/gains taken to equity (32) 157
Reclassified to income statement 48 60
Net impact of expected credit losses 1 (34)
Cash flow hedges:
Net movements in cash flow hedge reserve (108) 283
Taxation relating to components of other comprehensive income 14 (12)
Other comprehensive (loss)/income for the year, net of taxation (772) 709
Total comprehensive income for the period 623 2,053
Total comprehensive income attributable to:
Non-controlling interests (14) (13)
Parent company shareholders 637 2,066
Total comprehensive income for the period 623 2,053
1 Includes $76 million reversal of deferred tax liability partly offset by
$13 million capital gain tax on sale of equity investment and $46 million tax
credit from own credit adjustment on financial liabilities at fair value
through profit or loss
Page 38
Financial statements continued
Condensed consolidated interim balance sheet
As at 31 March 2024
31.03.24 31.12.23
$million
$million
Assets
Cash and balances at central banks 61,927 69,905
Financial assets held at fair value through profit or loss 162,159 147,222
Derivative financial instruments 46,794 50,434
Loans and advances to banks 39,698 44,977
Loans and advances to customers 283,403 286,975
Investment securities 161,268 161,255
Other assets 42,709 47,594
Current tax assets 510 484
Prepayments and accrued income 3,104 3,033
Interests in associates and joint ventures 969 966
Goodwill and intangible assets 6,153 6,214
Property, plant and equipment 2,252 2,274
Deferred tax assets 661 702
Assets classified as held for sale 918 809
Total assets 812,525 822,844
Liabilities
Deposits by banks 29,691 28,030
Customer accounts 459,386 469,418
Repurchase agreements and other similar secured borrowing 12,454 12,258
Financial liabilities held at fair value through profit or loss 85,956 83,096
Derivative financial instruments 48,048 56,061
Debt securities in issue 60,997 62,546
Other liabilities 45,238 39,221
Current tax liabilities 1,121 811
Accruals and deferred income 5,893 6,975
Subordinated liabilities and other borrowed funds 10,860 12,036
Deferred tax liabilities 597 770
Provisions for liabilities and charges 414 299
Retirement benefit obligations 163 183
Liabilities included in disposal groups held for sale 868 787
Total liabilities 761,686 772,491
Equity
Share capital and share premium account 6,789 6,815
Other reserves 8,247 9,171
Retained earnings 28,893 28,459
Total parent company shareholders' equity 43,929 44,445
Other equity instruments 6,505 5,512
Total equity excluding non-controlling interests 50,434 49,957
Non-controlling interests 405 396
Total equity 50,839 50,353
Total equity and liabilities 812,525 822,844
Page 39
Financial statements continued
Condensed consolidated interim statement of changes in equity
For the three months ended 31 March 2024
Ordinary share capital and share premium account Preference share capital and share premium account Capital and merger reserves(1 Own credit adjust-ment reserve Fair value through other compre-hensive income reserve - debt Fair value through other compre-hensive income reserve - equity Cash flow hedge reserve Trans-lation reserve Retained earnings Parent company share-holders' equity Other equity instru-ments Non-controlling interests Total
$million
$million ) $million
$million
$million
$million
$million
$million
$million
$million
$million
$million
$million
As at 01 January 2023 5,436 1,494 17,338 (63) (1,116) 206 (564) (7,636) 28,067 43,162 6,504 350 50,016
Profit for the period - - - - - - - - 3,469 3,469 - (7) 3,462
Other comprehensive income/(loss)(2) - - - 163 426 124 655 (489) (47)(3) 832 - (31) 801
Distributions - - - - - - - - - - - (26) (26)
Redemption of other equity instruments - - - - - - - - - - (1,000) - (1,000)
Treasury shares net movement - - - - - - - - (189) (189) - - (189)
Share option expense, net - - - - - - - - 173 173 - - 173
of taxation
Dividends on ordinary shares - - - - - - - - (568) (568) - - (568)
Dividends on preference shares and AT1 securities - - - - - - - - (452) (452) - - (452)
Share buy-back(4,5) (115) - 115 - - - - - (2,000) (2,000) - - (2,000)
Other movements - - - - - - - 12(6) 6(6) 18 8(6) 110(7) 136
As at 31 December 2023 5,321 1,494 17,453 100 (690) 330 91 (8,113) 28,459 44,445 5,512 396 50,353
Profit for the period - - - - - - - - 1,403 1,403 - (8) 1,395
Other comprehensive (loss)/income(2) - - - (331) 24 (90)(13) (95) (440) 166(3,8) (766) - (6) (772)
Other equity instruments issued, net of expenses - - - - - - - - - - 993(12) - 993
Treasury shares net movement - - - - - - - - 10 10 - - 10
Share option expense, net - - - - - - - - 68 68 - - 68
of taxation
Dividends on preference shares and AT1 securities - - - - - - - - (180) (180) - - (180)
Share buy-back(9) (26) - 26 - - - - - (1,000) (1,000) - - (1,000)
Other movements - - - - 7 - - (25)(6) (33)(10) (51) - 23(11) (28)
As at 31 March 2024 5,295 1,494 17,479 (231) (659) 240 (4) (8,578) 28,893 43,929 6,505 405 50,839
1 Includes capital reserve of $5 million, capital redemption reserve of
$363 million and merger reserve of $17,111 million
2 All the amounts are net of tax
3 Comprises actuarial gain, net of taxation on Group defined benefit
schemes
4 On 16 February 2023, the Group announced the buyback programme for a
share buyback of its ordinary shares of $0.50 each. Nominal value of share
purchases was $58 million, and the total consideration paid was $1,000 million
and the buyback completed on 29 September 2023. The total number of shares
purchased was 116,710,492, representing 4.03 per cent of the ordinary shares
in issue as at the commencement of the buyback. The nominal value of the
shares was transferred from the share capital to the capital redemption
reserve account
5 On 28 July 2023, the Group announced the buyback programme for a share
buyback of its ordinary shares of $0.50 each. Nominal value of share purchases
was $57 million, and the total consideration paid was $1,000 million and the
buyback completed on 6 November 2023. The total number of shares purchased was
112,982,802, representing 3.90 per cent of the ordinary shares in issue as at
the commencement of the buyback. The nominal value of the shares was
transferred from the share capital to the capital redemption reserve account
6 Movement related to Translation adjustment and AT1 Securities charges
7 Movements primarily from non-controlling interest pertaining to Mox Bank
Limited ($48 million), Trust Bank Singapore Limited ($34 million) and Zodia
Custody Limited ($28 million)
8 Includes $147 million gain on sale of equity investment in other
comprehensive income reserve transferred to retained earnings partly offset by
$13 million capital gain tax
9 On 23rd February 2024, the Group announced the buyback programme for a
share buyback of its ordinary shares of $0.50 each. As at Q1 2024 the buyback
is ongoing, but the total number of shares purchased was 51,531,300
representing 1.9 per cent of the ordinary shares in issue, the total
consideration paid was $437 million, and a further $563 million relating to
irrevocable obligation to buyback shares under the buyback programme has been
recognised. The nominal value of the shares was transferred from the share
capital to the capital redemption reserve account
10 Includes $46 million related to Ghana hyperinflation
11 Movements related to non-controlling interest from Trust Bank
Singapore Limited ($23 million)
12 Relates to AT1 issued during the period net of expenses
13 Includes $147 million gain on sale of equity investment transferred
to retained earnings partially offset by $76 million reversal of deferred
liability
Page 40
Financial statements continued
Basis of preparation
This statement covers the results of Standard Chartered PLC together with its
subsidiaries and equity accounted interest in associates and jointly
controlled entities (the Group) for the three months ended 31 March 2024. The
financial information on which this statement is based, and the data set out
in the appendix to this statement, are unaudited and have been prepared in
accordance with the Group's accounting policies. The Group's material
accounting policies are described in the Annual Report 2023, which have been
prepared in accordance with UK-adopted international accounting standards and
International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU IFRS) and in conformity with the requirements of the Companies Act
2006. There are no significant differences between UK-adopted international
accounting standards and EU IFRS. The Group's Annual Report 2024 will continue
to be prepared in accordance with these frameworks.
The interim financial information does not constitute a full or condensed set
of financial statements under IAS 34 'Interim Financial Reporting' as
contained in UK-adopted international accounting standards or EU IFRS. The
interim financial information has been prepared in accordance with the
recognition and measurement principles, but not the disclosure requirements
under UK-adopted international accounting standards and EU IFRS.
The information in this interim financial report is unaudited and does not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. All references to reported performance/results within this
interim financial report means amounts reported under UK-adopted IAS and EU
IFRS or in reference to the statutory accounts for the year ended 31 December
2023, unless otherwise stated. This document was approved by the Board on 02
May 2024. The statutory accounts for the year ended 31 December 2023 have been
audited and delivered to the Registrar of Companies in England and Wales. The
report of the auditors was (i) unqualified, (ii) did not include a reference
to any matters to which the auditors drew attention by way of emphasis without
qualifying their report, and (iii) did not contain a statement under sections
498(2) and 498(3) of the Companies Act 2006.
Going concern
The Directors assessed the Group's ability to continue as a going concern,
including a review of the Group's forecasts, Funding and Liquidity metrics,
Capital and Liquidity plans, Legal and regulatory matters, Credit impairment,
macroeconomic conditions and geopolitical headwinds, and confirm they are
satisfied that the Group has adequate resources to continue in business for a
period of twelve months from 02 May 2024. For this reason, the Group continues
to adopt the going concern basis of accounting for preparing the interim
financial information.
Page 41
Other supplementary financial information
Average balance sheets and yields
Average assets
3 months ended 31.03.24
Average Average Interest income Gross yield Gross yield
non-interest earning balance
interest
$million
%
total balance
$million
earning balance
%
$million
Cash and balances at central banks 9,382 63,384 703 4.46 3.89
Gross loans and advances to banks 36,473 42,000 514 4.92 2.63
Gross loans and advances to customers 56,481 288,554 4,154 5.79 4.84
Impairment provisions against loans and advances to banks - (5,529) - - -
and customers
Investment securities - Treasury and Other Eligible Bills 11,195 30,157 386 5.15 3.75
Investment securities - Debt Securities 50,527 135,144 1,380 4.11 2.99
Investment securities - Equity Shares 3,780 - - - -
Property, plant and equipment and intangible assets 6,297 - - - -
Prepayments, accrued income and other assets 126,234 - - - -
Investment associates and joint ventures 1,023 - - - -
Total average assets 301,392 553,710 7,137 5.18 3.36
3 months ended 31.12.23
Average Average Interest income Gross yield Gross yield
non-interest earning balance
interest earning balance
$million
%
total balance
$million
$million
%
Cash and balances at central banks 10,582 67,162 766 4.52 3.91
Gross loans and advances to banks 35,375 45,787 584 5.06 2.85
Gross loans and advances to customers 53,984 288,046 4,014 5.53 4.66
Impairment provisions against loans and advances to banks - (5,790) - - -
and customers
Investment securities - Treasury and Other Eligible Bills 11,516 27,567 382 5.50 3.88
Investment securities - Debt Securities 36,323 131,238 1,342 4.06 3.18
Investment securities - Equity Shares 3,324 - - - -
Property, plant and equipment and intangible assets 6,181 - - - -
Prepayments, accrued income and other assets 129,698 4,173 (79) (7.51) (0.23)
Investment associates and joint ventures 1,122 - - - -
Total average assets 288,105 558,183 7,009 4.98 3.29
Page 42
Other supplementary financial information continued
3 months ended 31.03.23
Average Average Interest income Gross yield Gross yield
non-interest earning balance
interest
$million
%
total balance
$million
earning balance
%
$million
Cash and balances at central banks 11,076 58,261 515 3.58 2.99
Gross loans and advances to banks 30,547 41,723 454 4.41 2.53
Gross loans and advances to customers 61,342 312,030 3,739 4.86 4.03
Impairment provisions against loans and advances to banks - (6,086) - - -
and customers
Investment securities - Treasury and Other Eligible Bills 6,800 37,808 407 4.37 3.67
Investment securities - Debt Securities 24,612 138,821 1,169 3.42 2.88
Investment securities - Equity Shares 3,329 - - - -
Property, plant and equipment and intangible assets 9,273 - - - -
Prepayments, accrued income and other assets 129,935 - - - -
Investment associates and joint ventures 1,697 - - - -
Total average assets 278,611 582,557 6,284 4.37 2.93
Average liabilities
3 months ended 31.03.24
Average Average Interest expense Rate paid Rate paid
non-interest bearing balance
interest
$million
%
total balance
$million
bearing balance
%
$million
Deposits by banks 14,597 21,359 248 4.67 2.77
Customer accounts:
Current accounts 39,982 125,691 1,027 3.29 2.49
Savings deposits - 115,275 619 2.16 2.16
Time deposits 18,512 184,972 2,397 5.21 4.74
Other deposits 37,809 13,505 166 4.94 1.30
Debt securities in issue 11,111 63,809 896 5.65 4.81
Accruals, deferred income and other liabilities 146,203 963 8 3.41 0.02
Subordinated liabilities and other borrowed funds - 11,587 204 7.08 7.08
Non-controlling interests 392 - - - -
Shareholders' funds 49,335 - - - -
317,941 537,161 5,565 4.17 2.62
Adjustment for trading book funding cost and others (857)
Total average liabilities and shareholders' funds 317,941 537,161 4,708 3.52 2.21
Page 43
Other supplementary financial information continued
3 months ended 31.12.23
Average Average Interest expense Rate paid Rate paid
non-interest bearing balance
interest
$million
%
total balance
$million
bearing balance
%
$million
Deposits by banks 13,112 22,320 199 3.54 2.23
Customer accounts:
Current accounts 39,541 122,797 1,042 3.37 2.55
Savings deposits - 112,134 576 2.04 2.04
Time deposits 16,584 181,344 2,189 4.79 4.39
Other deposits 36,380 13,311 150 4.47 1.20
Debt securities in issue 13,229 65,337 840 5.10 4.24
Accruals, deferred income and other liabilities 143,058 8,140 (146) (7.12) (0.38)
Subordinated liabilities and other borrowed funds - 12,533 299 9.47 9.47
Non-controlling interests 379 - - - -
Shareholders' funds 46,089 - - - -
308,372 537,916 5,149 3.80 2.41
Adjustment for trading book funding cost and others (537)
Total average liabilities and shareholders' funds 308,372 537,916 4,612 3.40 2.16
3 months ended 31.03.23
Average Average Interest expense Rate paid Rate paid
non-interest bearing balance
interest
$million
%
total balance
$million
bearing balance
%
$million
Deposits by banks 13,610 25,445 29 0.46 0.30
Customer accounts:
Current accounts 44,618 130,896 906 2.81 2.09
Savings deposits - 114,478 436 1.54 1.54
Time deposits 13,595 184,692 1,772 3.89 3.62
Other deposits 54,853 4,584 45 3.98 0.31
Debt securities in issue 9,585 65,632 807 4.99 4.35
Accruals, deferred income and other liabilities 135,756 1,035 13 5.09 0.04
Subordinated liabilities and other borrowed funds - 12,207 270 8.97 8.97
Non-controlling interests 324 - - - -
Shareholders' funds 49,858 - - - -
322,199 538,969 4,278 3.22 2.01
Adjustment for trading book funding cost and others (334)
Total average liabilities and shareholders' funds 322,199 538,969 3,944 2.97 1.86
Page 44
Other supplementary financial information continued
Net Interest Margin
Q1'24 Q4'23 Q1'23
$million
$million
$million
Interest income (reported) 7,137 7,009 6,284
Average interest earning assets 553,710 558,183 582,557
Gross yield (%) 5.18 4.98 4.37
Interest expense (Reported) 5,565 5,149 4,278
Adjustment for trading book funding cost and others (857) (537) (334)
Interest expense adjusted for trading book funding cost and others 4,708 4,612 3,944
Average interest-bearing liabilities 537,161 537,916 538,969
Rate paid (%) 3.52 3.40 2.97
Net yield (%) 1.66 1.58 1.40
Net interest income adjusted for trading book funding cost and others 2,429 2,397 2,340
Net interest margin (%) 1.76 1.70 1.63
Page 45
Other supplementary financial information continued
Important Notice - Forward-looking statements
This document may contain 'forward-looking statements' that are based on
current expectations or beliefs, as well as assumptions about future events.
These forward-looking statements can be identified by the fact that they do
not relate only to historical or current facts. Forward-looking statements
often use words such as 'may', 'could', 'will', 'expect', 'intend',
'estimate', 'anticipate', 'believe', 'plan', 'seek', 'continue' or other words
of similar meaning.
By their very nature, forward-looking statements are subject to known and
unknown risks and uncertainties and can be affected by other factors that
could cause actual results, and the Group's plans and objectives, to differ
materially from those expressed or implied in the forward-looking statements.
Recipients should not place reliance on, and are cautioned about relying on,
any forward-looking statements. There are several factors which could cause
actual results to differ materially from those expressed or implied in
forward-looking statements. The factors that could cause actual results to
differ materially from those described in the forward-looking statements
include (but are not limited to): changes in global, political, economic,
business, competitive; market forces or condition; future exchange and
interest rates; changes in environmental, social or physical risks;
legislative, regulatory and policy developments; the development of standards
and interpretations; the ability of the Group to mitigate the impact of
climate change effectively; risks arising out of health crisis and pandemics,
changes in tax rates, future business combinations or dispositions; and other
factors specific to the Group. Any forward-looking statement contained in
this document is based on past or current trends and/or activities of the
Group and should not be taken as a representation that such trends or
activities will continue in the future.
No statement in this document is intended to be a profit forecast or to imply
that the earnings of the Group for the current year or future years will
necessarily match or exceed the historical or published earnings of the Group.
Each forward-looking statement speaks only as of the date of the particular
statement. Except as required by any applicable laws or regulations, the Group
expressly disclaims any obligation to revise or update any forward-looking
statement contained within this document, regardless of whether those
statements are affected as a result of new information, future events or
otherwise.
Please refer to the Group's 2023 Annual Report for a discussion of certain
risks and factors that could cause actual results, and the Group's plans and
objectives, to differ materially from those expressed or implied in the
forward-looking statements.
Financial instruments
Nothing in this document shall constitute, in any jurisdiction, an offer or
solicitation to sell or purchase any securities or other financial
instruments, nor shall it constitute a recommendation or advice in respect of
any securities or other financial instruments or any other matter.
Caution regarding climate and environment related information
Some of the climate and environment related information in this document is
subject to certain limitations, and therefore the reader should treat the
information provided, as well as conclusions, projections and assumptions
drawn from such information, with caution. The information may be limited due
to a number of factors, which include (but are not limited to): a lack of
reliable data; a lack of standardisation of data; and future uncertainty. The
information includes externally sourced data that may not have been verified.
Furthermore, some of the data, models and methodologies used to create the
information is subject to adjustment which is beyond our control, and the
information is subject to change without notice.
Chinese translation
If there is a dispute between any translation and the English version of this
Q1 2024 Results, the English text shall prevail.
Page 46
CONTACT INFORMATION
Global headquarters
Standard Chartered Group
1 Basinghall Avenue
London, EC2V 5DD
United Kingdom
telephone: +44 (0)20 7885 8888
facsimile: +44 (0)20 7885 9999
Shareholder enquiries
ShareCare information
website: sc.com/shareholders (http://sc.com/shareholders)
helpline: +44 (0)370 702 0138
ShareGift information
website: ShareGift.org (http://ShareGift.org)
helpline: +44 (0)20 7930 3737
Registrar information
UK
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol, BS99 6ZZ
helpline: +44 (0)370 702 0138
Hong Kong
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
website: computershare.com/hk/investors
(http://computershare.com/hk/investors)
Chinese translation
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Centre
183 Queen's Road East
Wan Chai
Hong Kong
Register for electronic communications
website: investorcentre.co.uk (http://investorcentre.co.uk)
For further information, please contact:
Manus Costello, Global Head of Investor Relations
+44 (0) 20 7885 0017
LSE Stock code: STAN.LN
HKSE Stock code: 02888
Page 47
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